Luxembourg domiciled funds have attracted €418bn in new assets, representing an increase of 11.18% compared to the previous year, according to Luxembourg Fund Association (Alfi).
More than 70% of investments in Luxembourg constituted new money, with Ucits remaining the most popular vehicle, followed by growing demand for alternative strategies, including private equity and real estate.
“Net sales tripled in 2017 compared to 2016, going from €99.6bn to €308.4bn” stresses Denise Voss, ALFI chairman (pictured).
Overall, the AUM of Luxembourg domiciled funds has increased by a trillion over the scope of three years, from €3trn in September 20114 to 4trn as of September 2017.
Recent data Lipper data on the mutual fund market suggest that Luxembourg is particularly successful in distributing multi-asset funds, it has reported the highest net inflows across the continent. In other asset classes, such as alternative Ucits, equities and bonds, Ireland continues to dominate the market.
Overall, 2017 has been a successful year for the European mutual fund industry, with assets managed in European Mutual Funds growing by €1trn over the past year.