With 3,741.33 billion euros of AUM as of December 31 2016, and an annual growth rate of 6.7%, investment funds domiciled in Luxembourg reached a new record.

Luxembourg is well-known as a UCITS fund hub, however, since the introduction of the Alternative Investment Fund Managers Directive (AIFMD), the Associate of the Luxembourg Fund Industry (ALFI) has seen increasing interest from asset managers of private equity, real estate and hedge funds.

Commenting on the figures, Denise Voss, chairman of ALFI says, “UK asset managers, and those asset managers from other non-EU countries who currently use the UK to access investors in Europe will, once the UK leaves Europe, have to domicile their funds in an EU member country. Luxembourg continues to be one of the most sought after EU countries for setting up investment funds and fund management companies”.

“We are also seeing opportunities brought by digitalization and the growth of fintech companies. Online investment is slowly but surely continuing to grow, robo advice is developing and, as a result, we have to change our way of working, not only to facilitate these new technologies and distribution platforms but to take advantage of the efficiencies digital technologies can offer our industry,” says Voss.