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30 March 2010

ALFI/Lipper study on future of UCITS: “Symbiosis in the evolution of UCITS”


The Association of the Luxembourg Fund Industry has unveiled a study on the European cross-border fund industry. Produced by Lipper FMI, it looks at the market's growth from its inception in 1988 and the future size of the industry.

ALFI, the Association of the Luxembourg Fund Industry, today unveiled a study on the European cross-border fund. Entitled “Symbiosis in the evolution of UCITS” and produced by Lipper FMI, it looks at the growth of the market from its inception in 1988 and the future size of the industry.
 
ALFI examines what current fiscal policy and expected future age-related spending imply for the path of debt/GDP ratios over the next several decades. Its projections of public debt ratios lead ALFI to conclude that the path pursued by fiscal authorities in a number of industrial countries is unsustainable. Drastic measures are necessary to check the rapid growth of current and future liabilities of governments and reduce their adverse consequences for long-term growth and monetary stability.
 
The study, a comprehensive analysis of the cross border fund industry in Europe, explains Lipper FMI’s latest estimates of a cautious compound annual growth rate of 6.8 per cent for Europe over the next five years, a substantial slow-down when compared with a 12 per cent growth rate achieved since the early 1990s. According to Lipper, the size of the industry currently means that it is likely to develop at a slower rate and the additional burden of weak economic fundamentals in the foreseeable future will also act as a break.
 
According to Ed Moisson of Lipper FMI, a Thomson Reuters company, “This growth rate will result in a European industry with assets under management of €6.8trn by 2014 and, with a good wind, an upper range of €8trn.”
 
The study looks at the integral factors shaping the landscape of the European international fund industry, including the changing role of banks from fund manufacturers a single cross-border base, as well as the increased acceptance of Luxembourg products globally.
 
Camille Thommes, director general of ALFI commented: “The cross-border fund industry plays a key role in Luxembourg’s economy, but importantly Luxembourg has played a key role in the growth of UCITS, by offering a domicile which is politically neutral and commercially attractive and dedicated to the asset management industry. We are determined, going forward, to ensure that Europe retains its position as a leading cross-border fund centre and that Luxembourg continues to play a key role in the evolution of UCITS.”
 


© ALFI - Association of the Luxembourg Fund Industry

Documents associated with this article

Lipper_FMI_report_-_Symbiosis_in_the_evolution_of_Ucits-website.pdf


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