Despite ongoing macroeconomic and geopolitical volatility, Luxembourg has maintained its status as the world’s leading destination for cross-border funds.
This is the main finding of the annual global fund distribution report published by PwC.
It found that in 2023 Luxembourg had a 54.6% market share of global cross-border fund registrations, despite a 0.4% decline in the number of registrations.
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Ireland stands in a similarly dominant position with a 36.4% market share.
Ucits funds dominate the global cross-border funds market, accounting for 91.6% of the funds.
According to Robert James Glover, advisory partner for global fund distribution at PwC Luxembourg, the figures show an undeniable appetite for global diversification.
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“We’re seeing a surge in new fund registrations, particularly in Spain, as investors seek exposure to international markets. Interestingly, Ucits funds continue their reign supreme, with Luxembourg leading the pack.
“While Non-Ucits haven’t reached critical mass yet, the rising market share in key jurisdictions such as Luxembourg and Ireland suggests a potential shift on the horizon.”
“We saw a balanced increase of 0.9% in both cross-border ETFs and mutual funds, and the number of registrations grew by 1.6% compared to last year,” added Glover.
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“To that end, the distribution landscape shows remarkable resilience, with growth continuing despite the headwinds of a volatile macroeconomic environment impacting the global cross-border fund distribution.”
