Global cross-border assets climbed to €8.5 trillion in 2025, with a record 16% of them now sourced from outside Europe.
According to the most recent edition of the annual Alfi-Broadridge study of cross-border investment funds, Luxembourg continues to lead the global cross-border landscape, representing 42% of worldwide cross-border assets under management.
The report highlights how the industry is becoming increasingly global, concentrated and competitive, driven by scale, ETF growth and evolving investor preferences.
Following Europe, APAC remains the strongest growth region, with Hong Kong, Singapore and Taiwan continuing to drive demand for cross-border products. Meanwhile, markets in the Middle East, Africa and Latin America are showing rising adoption of Ucits structures, underlining continued confidence in European regulatory standards and investor protection frameworks.
The study also points to a clear shift in investor behaviour. While North American equity exposure remains significant, investor flows increasingly favour broader diversification, including European and emerging market equities.
At the same time, new thematic areas linked to geopolitical resilience, security and defence are gaining traction, particularly through ETFs. Product innovation continues to accelerate, with new fund launches closely aligned with evolving investor demand.
Britta Borneff, Chief Marketing Officer at ALFI, said: “Cross-border distribution is entering a new phase of maturity and internationalisation. Luxembourg continues to play a central role, supported by its robust regulatory framework, deep international expertise and strong distribution infrastructure. As investor demand evolves and markets become more complex, the ability to deliver trust, innovation and operational efficiency at scale will become increasingly important.”
Nigel Birch, VP Head of Global, Data & Analytics, Broadridge, added: “The cross-border industry continues to prove its resilience and global relevance. Investor demand is broadening geographically and becoming more selective, while scale and passive investing continue to reshape the competitive landscape. In this environment, high-quality market intelligence is essential to understand where flows are moving and which long-term trends are emerging.”
