Fund relocation: Methods in Luxembourg

Author: | Published: 25 Mar 2010

The global economic downturn, together with the potential implementation of the European Directive on Alternative Investment Fund Managers, has led many funds to consider relocating to Luxembourg. It is important to understand what the country does offer, though, in terms of (I) advantages and (II) different ways to migrate.

Advantages of relocation

Luxembourg is the largest fund services centre in Europe and the second worldwide, after the US. Since 1959, when the first fund was established, the investment fund industry has expanded to the point that, as at December 31 2009, total assets-under-management (AUM) of Luxembourg investment funds reached €1.84 trillion. Over the past 12 months, the volume of AUM has increased by around 12%. Luxembourg hosts more than 75% of Ucits authorised for cross-border distribution in the EU.

Luxembourg was the first member country to implement the European directive on Undertakings for Collective Investment in Transferable Securities...