“Whilst the number of cross-border investment funds declined for the first time since 2014, the 1.9% increase in registrations reflects a trend of fund range rationalisation, where asset managers are prioritising larger, widely distributed funds while consolidating underperforming ones,” said Christophe Saint-Mard, partner for global fund distribution at PWC Luxembourg. Photo: PWC Luxembourg

“Whilst the number of cross-border investment funds declined for the first time since 2014, the 1.9% increase in registrations reflects a trend of fund range rationalisation, where asset managers are prioritising larger, widely distributed funds while consolidating underperforming ones,” said Christophe Saint-Mard, partner for global fund distribution at PWC Luxembourg. Photo: PWC Luxembourg

More than half of funds distributed on a cross-border basis are domiciled in the grand duchy, says the latest edition of PWC Luxembourg’s annual global fund distribution poster. New registrations grew by 1.9% in Europe, led by Hungary, Denmark, Poland, Slovakia and Luxembourg.

As of the end of 2024, there were 143,244 cross-border registrations of investment funds. That figure has almost doubled from 83,505 in 2014, said the 25th edition of PWC Luxembourg’s global fund distribution , which looks at cross-border fund distribution trends across 40 countries.

The number of cross-border investment funds, however, declined for the first time since 2014 (dropping from 14,725 in 2023 to 14,649 in 2024). That’s a 0.5% decrease year-on-year.

On the other hand, there was a 1.9% increase in the number of cross-border registrations (from 140,635 in 2023 to 143,244 in 2024). New registrations were led by Hungary (423), Denmark (275), Poland (255), Slovakia (251) and Luxembourg (236).

“Equity funds remain the leading asset class of cross-border funds, making up around 50% of the market, followed by bond funds at 28%,” said PWC. Exchange-traded funds are boosting their market share: they represent roughly 32% of the number of cross-border investment funds and 37% of the number of registrations.

Lion’s share for Luxembourg

Luxembourg holds--by far--the lion’s share of funds distributed on a cross-border basis. Over half (52.3%) are domiciled in the grand duchy.

Ucits (essentially, mutual funds) dominate the funds that are distributed on a cross-border basis, noted the report: 92% of them are Ucits; only 8% are non-Ucits. More than half of cross-border Ucits funds are domiciled in Luxembourg, but only 16% of cross-border non-Ucits funds are domiciled in the grand duchy. Jersey, the US and Ireland are ahead of Luxembourg when it comes to this category.

The top 18 cross-border management companies--by the number of countries of distribution at group level--are Luxembourg companies. The podium features Franklin Templeton, Blackrock and UBS Group.

“Whilst the number of cross-border investment funds declined for the first time since 2014, the 1.9% increase in registrations reflects a trend of fund range rationalisation, where asset managers are prioritising larger, widely distributed funds while consolidating underperforming ones,” commented Christophe Saint-Mard, partner for global fund distribution at PWC Luxembourg. “At the same time, private markets continue their impressive growth, with European private market assets surpassing €4trn, fuelled by strong investor demand for alternatives. Luxembourg continues to lead in private market AUM, accounting for more than half of Europe’s total.”

Related articles