The ALFI Global Asset Management Conference, held in March 2026 at the European Convention Center, highlighted Luxembourg’s resilience and evolving role as a premier global fund hub.
Amid geopolitical uncertainty, industry leaders gathered to discuss a “benevolent” economic outlook, the maturing landscape of sustainable finance, and a spirited debate over European regulatory oversight – which Funds Europe has covered in its latest Luxembourg Report.
Jean-Marc Goy, chairperson, ALFI, introducing the event, did not mince words when speaking on behalf of the Association to the European Commission narrative that a single capital market requires a single supervisory authority, which was described as wrong.
Similarly, Luxembourg finance minister Gilles Roth voiced strong opposition, arguing that centralising supervision would increase costs and administrative burdens for end-investors. As Roth emphasised, the goal is to reduce barriers to cross-border investment and “help capital move faster into the real economy” – not to create additional layers of administration.
Conversely, ESMA’s Evert Van Walsum maintained that the current framework has reached its limit, and greater coordination is required to achieve a true CMU.
ETFs
The rise of active ETFs emerged as a dominant trend, with a nod to figures suggesting that the European active ETF market grew by some 95.7% in the past year.
Regarding sustainability, the industry is transitioning to the SFDR 2.0 regime, published in November 2025. Experts like Raoul Heinen (Linklaters) noted that the industry generally welcomes the simplification, which reflects a move toward “economically grounded” sustainability focused on tangible results rather than labels.
The challenge to mid-sized managers to remain profitable was highlighted, along with pillars for success outlined by senior leaders of asset management businesses in Luxembourg, including: Moving away from generic products toward tailored, goal-based solutions; using AI and data analytics to protect margins while increasing efficiency; leveraging international reach and research-driven active management.
Future outlook
Luxembourg continues to enhance its attractiveness through fiscal reforms, including a new carried interest regime and an expected corporation tax cut by 2027.
The conference highlighted innovation remains at the forefront, evidenced by the Catapult FundTech award given to Qvonto, a firm specialising in the automation of regulatory reporting.
Ahead of the conference
Ahead of the Conference, Funds Europe asked participants for their views.
Noting a “benevolent” outlook for the global economy, forecasting 2% growth in the US and 1.3% in the Euro area, top economist Martin Moryson favours European and Japanese stocks over US markets, citing AI-driven productivity gains.
Sustainability is seen as having matured into an economically grounded discipline linked to risk management and productivity, with Luxembourg’s industry generally welcoming the SFDR 2.0 regime, given the clarity it brings to product positioning.
And the AMLA oversight of anti-money laundering was picked out as driving continued harmonisation on AML/CFT across the industry, including in Luxembourg.
