The 23rd edition of PwC Luxembourg’s Global Fund Distribution (GFD) poster highlights the resilience of cross-border fund distribution despite macroeconomic volatility, said a press release published by PwC on 12 June.
“While the effects of a rapidly changing macroeconomic environment are particularly evident with regard to Ucits AuM & net sales, the overall distribution landscape continues to grow, with Luxembourg retaining a significant lead as a domicile of choice for cross border Ucits,” said Robert Glover, partner, global fund distribution at PwC Luxembourg. “Encouragingly, the grand duchy continued to make headway in the AIF space at a time when other centres saw a decline.”
Here are a few takeaways from the poster.
55.6% of cross-border funds domiciled in Luxembourg
The number of cross-border funds domiciled in Luxembourg increased by 1.4%, going from 7,516 funds in 2021 up to 7,618 funds as of the end of 2022, found the study. 14,607 cross-border investment funds accounted for 138,467 registrations globally as of the end of last year, said PwC Luxembourg. With 55.6% of market share, the grand duchy remains the leading domicile for cross-border fund distribution.
Top management groups have Luxembourg as first domicile
PwC analysed the top management companies, ranking them by the total number of countries of distribution at group level. Luxembourg was named as the first home country domicile of choice by the top 18 management groups. Among the top 30 management companies, Luxembourg was named as the first domicile of choice by 26 of them (followed by Ireland, which was named by four groups).
Ucits funds net sales down
Macroeconomic volatility was reflected by decreases in Ucits (undertaking for collective investment in transferable securities) net fund sales and Ucits assets under management (AuM) in 2022, said PwC Luxembourg’s press release.
However, cross-border investment fund registrations increased, noted PwC. Switzerland saw the largest increase in the number of new registrations last year, with 749 funds registered.
Despite drop, Luxembourg still top European domicile for Ucits AuM
The grand duchy remains the top European domicile for Ucits assets under management, with €4.078bn in 2022, said the poster. This is an increase of €2.075bn since 2012. Ireland is in second place, with €2.814bn in Ucits assets under management in 2022, an increase of €1.847bn since 2012.
Ucits dominate funds distributed on cross-border basis
Ucits make up 91.6% of funds that are distributed on a cross-border basis, said the poster. Only 8.4% are non-Ucits funds.
More than half (55%) of cross-border Ucits are domiciled in Luxembourg.
Cross-border non-Ucits funds, however, are more likely to be domiciled in Jersey, the United States or Ireland.
Find the 2023 edition of PwC Luxembourg’s Global Fund Distribution poster .