18 June 2014 | Press Releases
Positive growth trends of 2013 continue, according to ALFI Annual Report
18 June 2014 – According to the annual report of the Association of the Luxembourg Fund Industry (ALFI), issued today, the positive growth trends of 2013 continued into 2014, with assets under management for Luxembourg domiciled investment funds reaching a new record of EUR 2,742.208 billion at the close of April 2014.
During the first quarter of 2014 assets under management rose by EUR 94 billion, driven by EUR 68 billion of net sales. In 2013 Luxembourg attracted inflows of EUR 193 billion, representing 47% share of total European net sales, and 129 new fund promoters selected Luxembourg as their fund domicile of which 31% were outside of the EU.
Despite Luxembourg’s success, ALFI’s Chairman, Marc Saluzzi believes that the overall fund industry environment remains challenging. He explains: “The threat of a Financial Transaction Tax (FTT), the EU hesitations on Money Market Funds, the extension of the Markets in Financial Instrument Directive (MiFID II) still create a level of uncertainty for our industry and its investors. In addition, an increasing number of jurisdictions are striving to emulate the Luxembourg model and compete with our products in the cross-border space.”
The report outlines ALFI’s new initiative to improve Luxembourg’s service footprint and remain Europe’s leading investment fund centre. The Footprint project, a survey conducted among international fund managers and service providers operating out of Luxembourg, looks at how they intend to develop their service footprint both in Luxembourg and beyond.
Commenting on the initial outcome of the survey, Mr Saluzzi said: “The initial outcome is positive, with all interviewees confirming that Luxembourg will remain the cornerstone of their global fund business. One major growth opportunity that we are increasingly looking into is to also serve the non-Luxembourg business of fund managers by leveraging the Luxembourg infrastructure. The trend in this regard is encouraging.”
In its annual report, the Association is proud to report upon great achievements, inter alia:
The Annual Report furthermore sets out highlights of 2013-2014, which include:
Mr Saluzzi concludes: “Considering the achievements of our fund centre over the last three decades, I am confident that together we can overcome the challenges to ensure that Luxembourg remains the leading global fund distribution and servicing platform.”
The Annual Report 2013-2014 can be downloaded here.