Over the year, AUM increased by €418bn and nearly 74% of the AUM growth came from new money invested into Luxembourg funds. The growth means Luxembourg has added €1trn in assets under management in just three years, according to ALFI.
“Ucits saw the bulk of investments but alternative strategies such as private equity and real estate saw growing interest from investors, too,” the association said.
“The remaining increase in assets under management in Luxembourg funds during the year was a result of the impact of global financial markets.”
ALFI chair, Denise Voss, noted that net sales tripled in 2017, compared to the previous year, rising to €308.4bn from €99.6bn.
According to statistics from Luxembourg’s main regulator, the Commission de Surveillance du Secteur Financier (CSSF), about 20.5% of funds (€854.3bn in net assets) established in Luxembourg were from the US at 31 December 2017. This was followed by the UK at 17.6% (€732.22bn), Germany at 14.6% (€605.22bn), and Switzerland at 13.6% (€564.9bn).