Luxembourg AuM Increases 14.97% in Nine Months

Assets under management of Luxembourg domiciled funds reached €3006.76 billion at the end of September 2014, says the Association of the Luxembourg Fund Industry (ALFI). This represents a 14.97% increase since the beginning of this year and is mainly due to net sales.

Marc Saluzzi, chairman of ALFI, explains: “Assets under management have steadily increased since September 2013, and whilst with volatile markets assets under management actually may drop, it is encouraging both that investors have confidence in investment funds generally and that fund promoters continue to choose Luxembourg as a domicile.

Currently 3900 funds are domiciled in Luxembourg.

Explaining the success of Luxembourg as a domicile for cross-border funds, Saluzzi says: “A number of elements have contributed to this:

“First, Luxembourg’s focus has always been on the cross-border distribution of funds, which means that it has developed an expertise in the international, cross-border fund business which does not exist elsewhere.

“Second, we have a large array of investment vehicles and legal structures to suit investors and fund promoters from around the world. Legal structures can be adapted to each project, i.e. for retail as for institutional clients, for ‘plain vanilla’ as for alternative products.

“Last, we have a comprehensive market infrastructure, with all the elements in the investment fund value chain, from service providers to fund administrators to depositary banks, etc., available in Luxembourg.”