The 31st edition of the "Monterey Insight Luxembourg Fund Report" confirms the strength of Luxembourg's financial centre, which in 2024 extended the momentum seen the previous year. According to the report published this Wednesday morning, fund assets served in Luxembourg grew by 9% in dollars and 16% in euros, to reach 9,000 billion dollars, or 8,700 billion euros. This performance was driven by two factors: the good performance of regulated funds and the acceleration, once again, of unregulated structures, which recorded growth of 24% in dollars and 32% in euros. Lux LP, Soparfi and Raif reinforced their role as magnets for international managers, with Raif up 25% in dollars and 34% in euros.

Ucits remain the mainstay of the regulated segment, up 5% in dollars and 12% in euros. At the other end of the spectrum, SIFs and SICAVs showed more mixed fortunes, declining slightly in dollars, while stabilising or rising slightly in euros. Overall, regulated funds reached $6,040 billion.

Equity funds still far ahead

As for asset classes, equity funds still dominate, totalling 1.740 billion, well ahead of bond funds at $1,310 billion. Including unregulated vehicles, equities remain in the lead with $1,750 billion, while private equity and venture capital jump to $1,580 billion, becoming the leading category by number of products with more than 6,000 vehicles.

New fund and sub-fund creations reached $199.3 billion for 1,629 products over the year, with more than half (53%) in private assets, which also account for more than 40% of all assets. Equity ETFs recorded the strongest growth among segments in excess of $100 billion, up 27%, followed by private equity and venture capital (+21%).

Luxembourg also confirms its position in sustainable finance under the SFDR framework, with 14,432 Article 6 funds (USD 3,700 billion), 6,554 Article 8 funds (USD 4,050 billion) and 968 Article 9 funds (USD 277.8 billion). Among new launches, Article 6 products dominated (1,029 funds totalling $124.1 billion), followed by Article 8 funds (506 funds, $67.6 billion) and Article 9 (89 funds, $7.6 billion).

JP Morgan, State Street, Citco and Alter Domus lead the way

As for the players, JP Morgan retains its top spot among promoters, with $578.3 billion in assets, ahead of DWS International ($421.8 billion) and Amundi ($383.8 billion). Philippe Ringard, managing director and CEO of JP Morgan Asset Management Europe, said: "JP Morgan Asset Management has a long history in Luxembourg, providing solutions to clients in Europe and beyond for more than three decades. As a leading global asset manager, we strive to deliver outstanding investment performance, product innovation and tailor-made solutions to our clients. We are delighted to see these efforts reflected in our continued leadership position."

In fund services, State Street has consolidated its leadership in administration, custody and transfer agency, where it shares the top spot with IFDS. Riccardo Lamanna, country head of State Street, welcomes the renewal of these positions: "We are delighted to be recognised once again as a leader in fund administration, custody and transfer agency services in Luxembourg. This recognition continues to reflect the trust our clients place in us and our unwavering commitment to meeting their evolving needs in an increasingly complex and dynamic market. As Luxembourg continues to strengthen its position as a global hub for digital assets and cross-border fund distribution, while becoming a preferred domicile for private markets funds, we remain focused on innovation, operational excellence and partnership - to ensure world-class solutions for our clients, across all assets."

In the private assets segment, Citco and Alter Domus occupy the top two places, with Citco totalling $297.8 billion under TNAV, closely followed by Alter Domus with $285.8 billion. The rankings are similar for transfer agents. When it comes to custodians, State Street is ahead of JP Morgan Bank, Caceis and BNP Paribas, with $1.3 trillion under custody.

PwC maintains its leadership

The auditor landscape remains stable, with PwC in the lead with $3,608bn of assets audited. Mike Delano, partner and asset & wealth management leader at PwC Luxembourg, comments: "2024 reminded us that markets rarely move in a straight line. In a year marked by monetary easing, slowing inflation and heightened geopolitical tensions, Luxembourg continued to demonstrate its strength as a global asset management hub, with total assets serviced reaching €8.7 trillion. What particularly stands out is the industry's ability to adapt: traditional managers are embracing private markets on a large scale, supported by the famous 'Luxembourg toolbox' dedicated to alternative investments... Looking ahead, Luxembourg's financial centre is well placed to reinforce its leadership in private assets and sustainability, while meeting growing demand for emerging solutions such as tokenised funds."

Arendt & Medernach remains the leading law firm, followed by Elvinger Hoss Prussen. Gilles Dusemon, partner at Arendt, comments: "Luxembourg continues to confirm its role as the main European hub for investment funds. We are proud to see a sustained growth in the number of clients who turn to Arendt for strategic legal advice. Our teams remain fully committed to supporting them as they navigate ever-changing market dynamics in both traditional and alternative asset management."

For Monterey Insight, the year confirms the profound transformation of the market. Karine Pacary, managing director, sums up: "In this 31st edition, we are proud to present the 'Monterey Luxembourg Fund Report 2025' and to announce the launch of our new Analytics platform. The Luxembourg fund industry continued its strong momentum in 2024, with private equity and private debt driving growth. Raif, Lux LP and Soparfi remained at the heart of this expansion... Private assets continue to drive growth and innovation, while equity ETFs are establishing themselves as a fast-growing and increasingly influential asset class." She adds that the new analytics platform will "help users navigate the Luxembourg fund ecosystem, uncover the links between funds and service providers, and make informed strategic decisions."

At a time when international asset managers are seeking to structure flexible solutions, integrate sustainable strategies and deploy pan-European platforms capable of absorbing the rise of private markets, Luxembourg confirms, with figures to back it up, that it remains one of the few ecosystems capable of combining regulatory innovation, operational depth and stability.