The success story of the investment fund locations Luxembourg and Liechtenstein continues. Both locations again posted noteworthy figures for fund assets under management in the year 2018.
In Luxembourg, Europe’s largest investment fund centre, and the world’s second largest investment fund centre after the USA, assets under management in the private equity sector rose by 17%, in the case of credit funds by 25%, while UCITS funds recorded a net increase of CHF 118 billion (EUR 105 billion).
Liechtenstein, with its liberal and very modern investment fund legislation, also saw what is likely to have been a record number of 70 new fund launches by the end of the year 2018 along with CHF 49.93 billion (EUR 44.59 billion) in fund assets under management.
It proved possible to report these record figures, despite market higher volatility towards the end of 2018. This is due not just to the excellent operating conditions in Luxembourg and Liechtenstein, but also to continuing demand from fund initiators and investors for fund solutions for illiquid investments - particularly in the fields of private equity, real estate and debt.
In the traditional sector, mixed funds enjoyed particularly high demand. Due to the increasing importance of sustainability for investors, the market features more and more ESG (environmental, social and governance) and SRI (socially responsible investment) funds, with most ESG funds being pure equity funds.
“Continuing growth at both fund locations underscores the benefits that investment funds offer over other capital investment vehicles, such as for example certificates” states Eduard von Kymmel, Head of VP Fund Solutions, Chairman of the Board of Directors of VP Fund Solutions (Liechtenstein) AG and CEO of VP Fund Solutions (Luxembourg) SA.
VP Fund Solutions, the investment fund competence centre of the internationally active VP Bank Group, likewise reported outstanding new client volumes for the year 2018. In 2018, private label fund assets under management at both locations grew by almost 25% to reach a historic record high of over CHF 11 billion (EUR 9.8 billion), comfortably outperforming growth in the market as a whole.
VP Fund Solutions (Liechtenstein) AG celebrates its 20th anniversary in 2019. Further information about the investment fund activities of VP Bank Group is available on the website https://vpfundsolutions.vpbank.com/en.