Average annual net sales flows into Ucits, the type of fund that forms the backbone of Luxembourg’s investment sector, will rise from €201 billion in 2017 to €860 billion in thirty years under a “benign market scenario” published this week.
“Ucits assets have the potential to grow at a compound rate of 5% in the next three decades: This growth rate would quadruple their asset base to over €42trn by the year 2048. This model suggests that average annual net sales flows would rise from €201bn in 2017 to €860bn in thirty years.”
The report authors also wrote:
“If Luxembourg retains its current share of Ucits assets (36%), the model suggests that the Grand Duchy could host some €15trn of Ucits assets by 2048.”