27 Nov 2019 | Press Releases
Number of RAIFs launched up by 133% from 2018 | Net AUM for REIFs rises by 17.7% to €82.2 billion | Funds which invest across the globe without a geographical focus up 85%
2019 has been a strong year for growth within Luxembourg real estate investments funds (REIFs), according to data from a survey conducted by ALFI.
The number of launches of Reserved Alternative Investment Funds (RAIFs) focused on property grew from 27 in 2018 to 63 in 2019, an increase of 133%. The number of Alternative Investment Funds has also seen a marked expansion, from 27 manager-regulated AIFs in 2018, to 41 in 2019 – an increase of 51.9%. Non-regulated AIFs have seen 28 launches in 2019, bringing the combined number to 69 – a 155% increase.
Corinne Lamesch, Chairperson of ALFI, commented: “This data from the ALFI REIF Survey 2019 cements Luxembourg’s position as the most desirable location to launch and maintain real estate funds, and demonstrates their continued and growing appeal amongst institutional investors and fund managers across the globe.”
The increase in the number of fund launches corresponds with a rise in net asset under management (AuM) of Luxembourg real estate funds. As of Q3 2019, it stands at €82.2 billion for funds regulated and supervised by the CSSF; up by 12.4 billion from €69.84 billion over the past 12 months. This represents an increase of 17.7%. The 2019 survey also found there to be 37 funds which invest their capital without a geographical focus, compared to 20 funds in 2018; an increase of 85%.
ALFI’s Director General, Camille Thommes, added: “A 17.7% increase in the AuM of REIFs is a clear indication of Luxembourg’s attractiveness for investors, and the demand for these investment vehicles. This is due in no small part to the suitability of Luxembourg’s REIFs for investment strategies spanning the globe, evidenced by the increase of multi-geographical and multi-sectoral funds, underlining Luxembourg’s strength as a cross-border distribution hub.”
Download the full ALFI REIF Survey 2019
For more information, please contact:
Senior Communications and Industry Affairs Advisor, ALFI
Tel: +352 22 30 26 - 1
Notes to editors:
The Association of the Luxembourg Fund Industry (ALFI) represents the face and voice of the Luxembourg asset management and investment fund community. The Association is committed to the development of the Luxembourg fund industry by striving to create new business opportunities, and through the exchange of information and knowledge.
Created in 1988, the Association today represents over 1,500 Luxembourg-domiciled investment funds, asset management companies and a wide range of businesses that serve the sector. These include depositary banks, fund administrators, transfer agents, distributors, legal firms, consultants, tax advisory firms, auditors and accountants, specialist IT and communication companies. Luxembourg is the largest fund domicile in Europe and a worldwide leader in cross-border distribution of funds. Luxembourg-domiciled investment funds are distributed in more than 70 countries around the world.
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