For those of you who have yet to discover the Grand Duchy of Luxembourg, we are confident you will be impressed with the benefits it can offer your business.
With more than EUR 5,487 billion in net assets under management, Luxembourg is the largest investment fund centre in Europe and the second largest in the world after the US. It is the largest global distribution centre for investment funds, with its funds offered in more than 70 countries around the world.
Luxembourg’s investment funds have a dominant share in both the retail and the institutional marketplace in Europe, and they are the vehicle of choice in many parts of Asia, Latin America and the Middle East. Luxembourg is also a major centre for alternative asset classes with more than EUR 843 billion of assets managed by alternative fund managers.
How did Luxembourg build these strong positions in the global investment fund industry?
It comes down to three concepts: international orientation, excellence and stability.
A founding member of the European Union (EU), Luxembourg is also a member of all the principal international organisations. The country’s strategic location at the heart of Europe and its traditional openness towards cross-border integration established it very early on as a major international financial centre.
Furthermore, as an AAA-rated economy, Luxembourg has sound public finances and is politically stable. Its social stability, based on a culture of consensus, makes it a great place to work and do business, and its high quality of living makes it a pleasant place to live.
This backdrop has, over the decades, attracted thousands of investment firms and service providers, who collectively contribute unrivalled knowledge and expertise to the global investment industry players, whether they operate from Luxembourg or not.
Luxembourg offers a wide range of investment opportunities, and particularly builds on the strength of three pillars: UCITS, Alternative Investment Funds (AIFs) and Responsible Investing (RI).
The acronym UCITS is recognised as global brand in the investment fund world. UCITS are best in class when it comes to investor protection. Asset managers typically establish UCITS funds with a global distribution strategy.
Learn more about UCITS.
Many corporations, public organisations and financial service providers set up Alternative Investment Funds, whether they wish to hedge risks or invest in specific areas such as real estate, private equity, niche markets or long-term infrastructure. Over the years, the Luxembourg fund industry has built up unique expert knowledge in these fields.
Learn more about Alternative investment funds legal vehicles
Learn more about Alternative investment funds asset classes
Luxembourg is a leading centre in the area of responsible investing. Investors are reconsidering their behaviour and, as a consequence, interest in long-term or responsible savings products is constantly increasing.
Learn more about Responsible investing