EUROPE - Luxembourg, which in 2007 was the number one fund domicile in Europe, will continue to attract the most investments also in 2008, suggests Walter Koop of KPMG.
Speaking at the fourth asset manager forum organised by Universal-Investment in Frankfurt today, Koop said with total assets under management of around €2.124bn at the end of 2007, and a market share of nearly 25%, Luxembourg is the most popular fund location.
According to Koop, a German partner with KPMG who advises the fund industry in Luxembourg, the Grand Duchy's quick and flexible response to EU directives, the positioning as a cross-border distribution hub and the continued adjustment of regulation and taxation are among the reasons for its popularity.
The US, Switzerland, Germany, the UK and Italy are the top five countries investing most in Luxembourg, while American investment bank JPMorgan has positioned itself as market leader in Luxembourg.
Koop thinks the country's flexibility regarding legislation and product adjustments will continue to drive its popularity.
Peter Hadesch, member of the board of Nestle's €1.2bn pension fund in Germany which is domiciled in ireland, and chairman of the board of the German Association of Corporate Pension Funds (VFPK), added the pooling instruments, also offered in Ireland, open the market and are an attractive tool.
For 2008, Koop predicts Luxembourg will also continue to expand its administration of hedge funds and real estate funds.
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