At the heart of Europe’s global asset management industry, Luxembourg is the largest investment fund centre in the continent, only outweighed by the US worldwide. Indeed, the reliable, safe and stable AAA Luxembourg economy, together with a state-of-the-art ecosystem focused on embracing technology and driving sustainability, have been crucial to lead the country’s investment funds cross-border distribution. In addition, the quality of service provided to international fund houses, and ultimately to final investors, has played a major role in helping financial organizations to cross the bridge into Luxembourg1.
Therefore, Luxembourg´s fund services offer asset managers a “One Stop Shop”, enabling them to outsource part of their administration, reporting and accounting duties, and to take advantage of the third-party alternative investment fund manager model. In fact, one of Luxembourg’s biggest attractions as a jurisdiction is its flexibility towards alternative investment funds. This has been updated to appeal to the needs of all private equity groups, regardless of whether they are based inside or outside of Europe, offering fund managers a comprehensive suite of fund structuring options and flexibility.
In numbers, net assets under management (AUMs) in the Luxembourg hub have almost tripled over the past decade, from about €2 trillion in 2011 to over €5.5 trillion in 20212, growing 20% just in the last 12 months3. Moreover, to illustrate the country’s diverse international role, it is worth highlighting that only 3.6% of the undertakings for collective investment (UCI) initiators in Luxemburg are originated within the country, being the 8th most relevant source of investments. In fact, as of August 31st 2021, the largest share of the net assets managed in Luxemburg come from North-American investors, corresponding to 20.5%. US-based UCI initiators, closely followed by Great Britain, with 16.9% of net AUMs and Switzerland and Germany – both with about 14%. To close the list, we can find French, Italian and Belgian investments, with weights amounting to 10.3%, 6.4% and 4.3%, respectively4.
With that in mind, both investors and asset managers based in Iberia are also becoming increasingly comfortable allocating their resources in Luxembourg. Such appeal for Luxembourg-registered funds in the Iberian market has been essentially underpinned by the wide and efficient network of legal, accounting and banking services; the country’s strong economic and political stability; and the highly qualified financial workforce.
CaixaBank Asset Management Luxembourg integrates the talent and experience of the specialized teams of the CaixaBank Asset Management group in the management of investment vehicles domiciled and registered in Luxembourg. We have managed Luxembourg SICAVs since 2013 (CaixaBank AM Spain) and Fonds Comun de Placement, FCP since 1997 (BPI GA). Our experienced team works to design and manage a complete range of investment solutions.
Our way of creating value is by our specialization and methodology. Our competitive advantage relies in our ability to be consistent and reliable.