Seeking to understand European or global fund markets without drilling into the ‘who’ and ‘how’ of cross-border funds would be a near-impossible task. As these pages spell out, cross-border products and the centres of expertise that service them, led by Luxembourg, play a key role driving industry growth.
Today, around half of European assets - and significant shares in Latin America, MEA and APAC - are held in cross-border ranges. And since Broadridge records began 20 years ago, cross-border funds have seen near-constant yearly inflows, in a testimony to their enduring popularity.
In the post-pandemic world, cross-border expertise in responsible investment and thematic funds has proved especially valuable, while there are growing signs, at the time of writing, that passive cross-border products have been a key holdout amidst 2022’s fund flows rout.
The rest of this year - and perhaps also years to come - will likely be more challenging, with many more geopolitical and economic events weighing down appetite: fund sales may come to symbolise a new ‘lower for longer’.
Nonetheless, whenever markets enter challenging phases, cross-border funds remain an attractive beacon, providing a safe haven of strong regulation that investors around the world seek out.
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