Almost 1 in 10 of all global funds domiciled in Luxembourg: study

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Almost one out of every ten funds sold in the world is domiciled in the tiny European outpost of Luxembourg, according to new data published by the European Fund and Asset Management Association (EFAMA).

EFAMA has today published its latest International Statistical Release, which describes the developments in the worldwide investment fund industry, taken from data collected form 46 countries during the third quarter of 2017.

Five European countries ranked among the top ten largest fund domiciles in the world according to the data with Luxembourg  9.3%, Ireland 5.3%, Germany 4.6% and France 4.5% all ahead of the United Kingdom at 3.7%.

The market share of the ten largest countries/regions in the world market were the United States (45.7%), Europe (34.2%), Australia (4.1%), Brazil (3.9%), Japan (3.3%), Canada (3.2%), China (3.1%), Rep. of Korea (0.9%), India (0.6%) and South Africa (0.4%).

Among the main developments in Q3 2017 EFAMA said in a statement announcing the statistics that worldwide investment fund assets increased by 1.8% in the third quarter to EUR 43.3trn.

Worldwide net cash inflows increased to EUR 694bn, up from EUR 574 bn in the second quarter.

Long-term funds (all funds excluding money market funds) recorded net sales of EUR 430bn, compared to EUR 460 billion in the second quarter.

  • Equity funds recorded net sales of EUR 121bn, up from EUR 113bn in the second quarter.
  • Bond funds posted net sales of EUR 193bn, down from EUR 200bn in the second quarter.
  • Balanced/mixed funds registered net sales of EUR 65bn, down from EUR 82bn in the second quarter.
  • Money market funds registered net sales of EUR 264bn in the third quarter, up from EUR 114bn in the previous quarter.  Worldwide money market funds experienced the highest inflows since the fourth quarter of 2014, due to strong demand in Europe, China and the US.
  • At the end of the third quarter, the asset share of equity funds represented 41 percent and the asset share of bond funds was 21 percent.  Balanced/mixed funds represented 18 percent of the worldwide total, whereas the asset share of money market funds was 11 percent.