Luxembourg: funds in flux
29 November 2023

Luxembourg: funds in flux

For a small country of just 660,000 people, Luxembourg can boast some big numbers. Total net assets in the Grand Duchy’s investment funds amount to around €5.2 trillion, making it Europe’s largest fund centre, and the second largest worldwide after the United States. The share of net European alternative assets under management held by Luxembourg-domiciled funds increased from 15.6% in 2010 to 61.8% in 2022, according to Preqin.

Luxembourg is also the world’s largest distribution centre for investment funds, which are offered in more than 70 countries. Alongside Germany, Denmark, Netherlands, Sweden, Norway, Switzerland, Singapore and Australia, Luxembourg is one of the very few countries to have highest AAA credit rating from all three ratings agencies: S&P Global, Fitch and Moody’s Investors Service. It is therefore no surprise that sovereign wealth funds and large pension funds – attracted by robust regulatory control, legal certainty and tax efficient frameworks – choose Luxembourg for their investment platforms, holding companies, and feeder funds.

Related News

May 2024 News

Switzerland: Still resilient and reliable?

Like the country in which they operate, Swiss law firms seem immune to adversity beyond their borders. So, how do they do they manage it?

May 2024 News

Germany’s distress: Switzerland needs the sick man of Europe to recover

As the German economic miracle gives way to stagnation and a real estate crisis, can Switzerland remain immune to the challenges facing its giant neighbour?

May 2024 News

A feast for litigators: Fallout from the UBS-Credit Suisse merger

As AT1 bondholders use “the world’s best, most expensive lawyers” to take on the Swiss financial regulator, what lessons does the Swiss bank merger provide?

May 2024 News

Swiss regulation: The privacy vs transparency debate rages on

New data protection law and anti-money laundering proposals that impact law firms’ privacy – how is Switzerland managing to square the circle?