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ARTICLE · 11 FEBRUARY 2021

Everything You Need To Know On Luxembourg Investment Funds

Loyens & Loeff
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From the regulatory and tax environment to the fund formation, get a comprehensive overview of the Luxembourg investment funds market.

LuxembourgFinance and Banking
Marc Meyers
Marc Meyers
Law and Practice

1. Investment Funds Market Overview

1.1 State of the Investment Funds Market

Luxembourg is the world's second-largest fund domicile after the USA, as the assets under management of Luxembourg-domiciled funds stood at EUR4,674.665 billion as at 31 October 2020. This increase is not only based on the growth of traditional Luxembourg-domiciled undertakings for collective investment in transferable securities (UCITS), but also due to the continued strong growth in respect of alternative investment funds.

Luxembourg's investment fund industry is a world leader in cross-border fund distribution, as Luxembourg-domiciled investment structures are distributed in over 70 countries around the globe, with a particular focus on Europe, Asia, Latin America and the Middle East. Many Luxembourg funds benefit from the European passport, which means that funds (and their managers) that comply with the UCITS Directive or the AIFM Directive can be

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