The tiny Grand Duchy of Luxembourg is still the biggest domicile for European funds—and it's bigger now than ever.
Luxembourg-domiciled funds had €2.225 trillion in assets at the end of April, the Association of the Luxembourg Funds Industry said. That is a nearly €300 billion increase from the end of last year.
"Following a year of political uncertainty which has led to turmoil in financial markets, we believe that this growth in assets under management in Luxembourg marks a return of confidence in investment funds," ALFI Chairman Marc Saluzzi said.
Saluzzi added that he remains cautious despite the record-setting figures, due to new regulation under consideration in Luxembourg. "The Financial Transaction Tax in particular could have a substantial negative impact on investors, and ALFI continues to work to ensure that policies are beneficial to the fund industry and its clients."