Assets under management of Luxembourg-domiciled funds have reached a historic level at the end of April 2012, at 2,225 billion under management. The latest figures from the Association of the Luxembourg Funds Industry (ALFI) show that Luxembourg remains the largest European fund center, followed by France and Germany.
According to ALFIs 2011 Annual Report, released today, 2011 was an excellent year in terms of creation of new funds, with 3845 funds domiciled in Luxembourg at the end of December 2011. This growth confirms the extent to which specialized investment funds have become an essential part of the Luxembourg funds industry, accounting for 277 of the 459 new funds created under the Luxembourg domicile in 2011, said ALFI in a press statement.
Marc Saluzzi, chairman of ALFI, said: Following a year of political uncertainty which has led to turmoil in financial markets, we believe that this growth in assets under management in Luxembourg marks a return of confidence in investment funds.
2011 was characterized by strong caution on the part of investors. Despite net inflows of 5 billion, Luxembourg funds finished the year 102 billion down on the previous year, with 2,096 under management.
Commenting on the regulatory environment, Saluzzi said: ALFI remains concerned by the regulatory pressure faced by the industry. The Financial Transaction Tax in particular could have a substantial negative impact on investors, and ALFI continues to work to ensure that policies are beneficial to the fund industry and its clients.
Saluzzi concludes: Its an interesting time in the fund management industry, and ALFI is particularly supportive of the growth of socially responsible investing, including the development of vehicles and benchmarks for so-called impact funds, microfinance funds and environmental funds. ALFI is also delighted at the opportunities the new European AIFM Directive offers to fund managers and institutional investors who are looking to develop alternative funds.
(JDC)