In a survey of over 250 asset managers worldwide, 54% confirmed that they are in the process of reshaping their distribution strategies, including increasing their staffing levels in new jurisdictions, and 64% indicated an increasing appetite for new cross-border product launches over the next five years in response to Brexit.

The good news for Luxembourg is that 42% consider it the fund domicile of choice today, a figure that is expected to rise to 62% over the next five years, according to participants. The key decision factors in this choice are an established regulatory environment (27%); distributions footprint (20%); favourable tax treatment (16%); existence of a strong services infrastructure (14%); strong overall reputation (13%) and cost (10%)--all areas where grand duchy came out top.

“Despite the ongoing geopolitical dynamics, the data shows managers realise that, whatever barriers to trade and international cooperation may grow out of these dynamics, maintaining access to global markets and investors around the world remains essential to their business models, as well as to the institutions and individuals who rely on them for their savings and investments,” said David Suetens, head of State Street in Luxembourg.

“Luxembourg is unique in that its innovation agenda is dedicated to the fund industry, making it a highly attractive and efficient platform for fund distribution to asset managers and investors,” said Suetens. “Following Brexit, the international recognition of Luxembourg as a number one choice for fund domiciles will continue, through the successful cooperation, collaboration, fiscal and legal stability Luxembourg has to offer.”