The grand duchy was the European fund domicile that recorded the highest net inflows last month.
Figures from the data firm Refinitiv Lipper released this week revealed that +€47.8bn flowed into single-funds based in Luxembourg in April 2020.
The jurisdictions with the next highest net inflows were Ireland (+€33.2bn) and the UK (+€6.1bn). The largest net outflows were recorded in Italy (-€4.8bn), the Netherlands (-€1.2bn) and France (-€1.1bn).
“It is noteworthy that the fund flows for Luxembourg (+€33.8bn), Ireland (+€16.9bn) and France (-€2.8bn) were impacted by flows in the money market segment.”
Bond funds contributed another +€14bn to Luxembourg’s fund sector, behind Ireland’s +€15.1bn and ahead of the UK’s €0.7bn, with Italian bond funds faring worst (-€3.5bn).
Luxembourg topped the tables in equity funds (+€6.1bn), ahead of the UK and Ireland (both +€5.1bn), with the Netherlands out -€1bn.
The UK saw net flows of +€1.5bn into mixed-asset funds in April 2020, Refinitiv Lipper reported. Glow observed:
“In contrast, Italy (-€0.6bn), Luxembourg (-€0.6 bn), and Ireland (-€0.4 bn) were the domiciles with the highest estimated net outflows from mixed-assets funds.”
However, Luxembourg recorded the highest estimated net inflows into alternative Ucits funds in April (+€33.8 bn), followed by Ireland (+€16.9bn) and Switzerland (+€1.1bn), with France notching up the biggest outflows (-€2.8bn).