Statistics: Luxembourg a global player
Luxembourg is the number one hub for global cross-border fund distribution. It is the largest fund centre in Europe and second largest in the world thanks to unequalled knowhow and a state-of-the-art regulatory framework.
Assets under management in the European funds industry
Notice: The data may not always be consistent with data published in last year's ALFI annual reports, due to adjustments made by EFAMA.
The 10 largest investment fund domiciles in Europe at 31 December 2015
The European fund industry has experienced year-on-year growth in net assets since 2012, and 2015 was no exception despite a degree of market uncertainty. There were EUR 13.300 billion assets under management at the end of 2015 thanks to 10.7% growth during the year. UCITS accounted for 61.6% of this total, with the remainder being alternative investment funds (AIFs).
Luxembourg remains the leading fund domicile in Europe, with a market share close to the combined total for Ireland and Germany, the second and third placed countries.
Net assets under management in Luxembourg funds
Recent years have seen one of the most remarkable periods in the history of the Luxembourg fund sector. After 21 months of uninterrupted growth, net assets under management peaked in May 2015 at EUR 3.600 billion, ending the year on EUR 3.500 billion. This figure had more than doubled in less than ten years.
Growth factors in Luxembourg investment funds
A strong overall annual growth in 2015 masked significant underlying variations. There were substantial increases in net asset for six months of the year, with major negative movements for three. Three-quarters of the EUR 411 billion growth in net assets was accounted for by capital inflows, an all time high. The remaining quarter was attributable to changes in financial markets.
Number of Luxembourg investment funds (legal entities)
Number of funds registered on or withdrawn from the CSSF list since 2000
Number of Luxembourg fund units
Notice: Fund unit = the number of stand-alone funds plus the number of sub-funds in umbrella structures.
There were 3,878 funds domiciled in Luxembourg at the end of 2015. This was a slight decrease on 2014 with 262 new funds launched and 289 withdrawn. There were 14,108 fund units at the end of the year, a net annual increase of 1.9%.
Legal status and legal form of Luxembourg domiciled investment funds
Nearly 60% of all new funds created were specialised investment funds (SIFs), confirming the continued success of this vehicle since it was introduced in 2007. At the end of March 2016, SIFs accounted for 41.3% of the Luxembourg market. The “Société d’Investissement en Capital Variable” (SICAV) has been the most popular legal structure since 2012, and by the end of March 2016 accounted for 55.8% of funds, compared to 43.1% for the once-dominant “Fonds Commun de Placement” (FCP).
Market shares of initiators by origin at 31 December 2015
There was no change in the ranking of the top ten leading fund initiators in terms of net assets. The US remained number one with 21.7%, but their market share has fallen for the fourth year running. The UK was next with 16.6% (following four years of growth) with Germany (14.7%) ranked third. They were just ahead of Switzerland (14.0%) which has seen it share decline in recent years. All of the top ten saw growth in net assets, with players from the UK enjoying particularly strong growth of 15.3% compared to 9.4% for US-based initiators. Italian initiators saw the highest percentage increase of 19.3%, albeit from a lower base. In terms of the number of funds and fund units, firms based in Germany have accounted for the most since 2007.
Investment policy of Luxembourg funds at 31 December 2015
Investment policy of Luxembourg investment funds at 31 December 2015
Equity funds represented 30.1% of total net assets at the end of 2015. This was the first time since 2001 that bond funds were not in first place. Bond funds lost 2.2 percentage points of market share over the year, a phenomenon attributable to negative net sales at the end of the year. Balanced funds remain in third place with 19.36% growth.
Specialised investment funds (SIFs) represented 11% of the assets under management in the Luxembourg industry at the end of 2015. As in 2014, all SIF asset classes (with the exception of cash and futures and/or options fund) saw growth in their net assets in 2015.