Cross-border distribution of investment funds 2025

Cross-border investment funds hit EUR 7 trillion as global footprint deepens

• Cross-border funds have become a cornerstone of asset management, placing Europe – and Luxembourg – at the centre of international distribution.
• By December 2024, cross-border assets under management (AuM) hit EUR 7trn, representing between 8% and 49% of AUM in every region, except North America.
• Born in Europe, UCITS funds now have over 10% of their assets held outside the region. APAC is a key growth market, and US firms account for nearly 50% of cross-border fund assets.
• Fee compression and market consolidation, driven by the rise of passive investing, are reshaping the industry – leading to fewer, larger players.
• The rise of active ETFs reflects both a strategic response to these shifts, and a growing investor appetite for more flexible options—with intense competition now emerging among a handful of dominant firms.

The 2025 edition of the Cross-Border Distribution of Investment Funds Study, completed in partnership by ALFI and Broadridge, offers a deep dive into the data and trends shaping the global footprint of UCITS and other cross-border fund structures.

The study finds that cross-border assets have reached EUR 7 trillion for the first time. Luxembourg continues to lead the way, accounting for nearly half of global cross-border AuM. This reinforces the Grand Duchy’s position as a trusted hub for infrastructure, innovation and regulatory know-how. But the report also shows that the cross-border landscape is shifting fast, shaped by growing fee pressure, market consolidation, investor shifts and regulatory fragmentation.

APAC has firmly established itself as the second-largest market, with Hong Kong, Singapore, and Taiwan serving as key hubs. Meanwhile, the Middle East and Latin America—though smaller in scale—demonstrate growing reliance on UCITS products as a guarantee of quality and regulatory certainty.

While passive strategies and ETFs continue to gain ground — driven by fee pressure, ESG fatigue, and consolidation — active investing is far from dead. Fund selectors still seek flexible, resilient strategies, like active ETFs or private equity. In a fast-changing cross-border market, success now depends on innovation, adaptability, and efficiency.

Britta Borneff, Chief Marketing Officer at ALFI, said: “Luxembourg remains a key cross-border fund distribution hub, holding nearly half of all cross-border assets. Future growth will be driven by structural trends and investor sentiment. As operational and regulatory complexity intensifies, Luxembourg stands out by offering the expertise, infrastructure and talent for asset managers with global ambitions.”

Nigel Birch, VP Head of Global, Data & Analytics, Broadridge, added: “The cross-border fund industry today faces an unprecedented rate of change. The surge in passive investing – especially through ETFs – is driving consolidation and rewriting the rules of the game, just as investor sentiment turns away from many of the themes that once buoyed the market. As asset managers navigate shifting investor sentiment, regulatory headwinds, and the rise of low-cost strategies, data-led insights are no longer optional – they’re essential.”

ALFI and Broadridge will be presenting the study findings in a webinar on 30 April 2025 at 10:00 CEST. Please register here to join.

To get a full overview of cross-border market trends, visit the Cross-Border Distribution of Investment Funds Study 2025 website.

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Dowload the press release in pdf.

ENDS

For more information, please contact:

ALFI

Luigi Salerno

ALFI Head of Communications Luigi.Salerno@alfi.lu

Peregrine Communications

ALFI@peregrinecommunications.com

Notes to editors:

About ALFI

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 1,400 Luxembourg domiciled investment funds, asset management companies and a wide range of business that serve the sector. 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 80 countries around the world.

ALFI’s mission is to lead industry efforts to provide solutions and make Luxembourg the most innovative international investment fund centre.

To keep up with all the news from ALFI and the fund industry in Luxembourg, follow us on LinkedIn, (@ALFIfunds), YouTube and Flickr.

For more information please visit www.alfi.lu.

About Broadridge

(NYSE: BR), a $4.5 billion global Fintech leader, is a leading provider of investor communications and technology-driven solutions to banks, broker, dealers, asset and wealth managers and corporate issuers. Broadridge’s infrastructure underpins proxy voting services for over 50 percent of public companies and mutual funds globally, and processes on average more than U.S. $10 trillion in fixed income and equity securities trades per day. Broadridge is part of the S&P 500® Index and employs over 12,000 associates in 17 countries.

For more information about Broadridge, please visit www.broadridge.com