Luxembourg s role in the global fund market. February 2012

Transcription

1 Luxembourg s role in the global fund market February 2012

2 Agenda 1. Introduction : Global Fund Market 2. Cross-border distribution trends 3. Main fund domiciles

3 Introduction: Global Fund Market Evolution of assets and number of funds in the world Source: ICI

4 Introduction: Global Fund Market Worlwide investment funds Market share (%) by assets as at Q3-11 Source: ICI * Europe excluding Luxembourg ** Americas excluding the US and Brazil

5 Introduction: Global Fund Market Worlwide investment funds asset classes Market share (%) by assets as at Q3-11 Source: ICI

6 Agenda 1. Introduction : Global Fund Market 2. Cross-border distribution trends 3. Main fund domiciles

7 Evolution of cross-border distribution Evolution of cross-border distribution Source: Lipper Hindsight, December 2011

8 Evolution of cross-border distribution Domicile share of cross-border funds* and registrations Domiciliation of x-border funds Domiciliation of x-border registrations Other: Liechtenstein, Jersey, Switzerland, Guernsey, Finland, Cayman Islands, Sweden, Hong Kong, Bermuda, Denmark, Singapore, Norway, BVI *Cross-border funds, i.e. funds distributed in at least 2 countries, including their domicile Source: Lipper Hindsight, December 2010

9 Hot spots for distribution Regional breakdown of distribution Region of distribution Total registrations Europe 50,477 Asia Pacific 5,488 Americas 1,673 Middle East 661 Africa 251 TOTAL 58,550 Source: Lipper Hindsight, September 2011

10 Hot spots for distribution Top 15 non-eu countries for distribution Country Total registrations as at Sept 2011 Switzerland 4,427 Singapore 2,058 Norway 1,660 Hong Kong 1,236 Chile 1,041 Macau 961 Taiwan 837 Liechtenstein 723 Bahrain 609 Jersey 511 Peru 498 Korea 277 Guernsey 275 Gibraltar 268 South Africa 221 Source: Lipper Hindsight, December 2010

11 Top cross-border fund groups Top 15 cross-border promoters By number of countries of sale Rank Promoter Countries of sale Source: Lipper Hindsight, December st domicile used as a x-border platform 1 FRANKLIN TEMPLETON 49 LU 2 HSBC HOLDINGS 42 LU 3 BLACKROCK 39 LU 4 BNP PARIBAS 36 LU 5 FIL LIMITED 32 LU 6 SCHRODERS 31 LU 7 AMUNDI GROUP 30 LU 8 UBS 30 LU 9 DEUTSCHE BANK 30 LU 10 JP MORGAN 29 LU 11 ALLIANZ GROUP 27 LU 12 PIMCO 27 IE 13 INVESCO 26 LU 14 PIONEER INVESTMENTS 26 LU 15 ABERDEEN ASSET MANAGEMENT 25 LU

12 Evolution of cross-border distribution Foreign fund distribution - Europe Domestic & Foreign fund distribution, and % of which are cross-border Source: Lipper, PwC Analysis

13 Evolution of cross-border distribution Foreign fund distribution - Asia Domestic & Foreign fund distribution, and % of which are cross-border 100% 90% 90% 79% 97% 80% 80% 70% 70% 70% 60% 50% 40% 56% 60% 50% 40% 30% 30% 20% 20% 10% 0% 59% 15% 26% 52% 19% 29% 3% 3% 42% 40% 18% Hong Kong Singapore South Korea Taiwan 10% 0% Source: Lipper, PwC Analysis % Luxembourg funds Domestic funds Other foreign funds % Cross-border funds

14 Evolution of cross-border distribution Foreign fund distribution Latin America Domestic & Foreign fund distribution, and % of which are cross-border Source: Lipper, PwC Analysis

15 Evolution of cross-border distribution Trends in cross-border fund distribution Growth in global registrations: 4.4% over the year 2011 (vs 7.2% growth in 2010) Strong growth in cross-border funds: 7.6% over the year 2011 (vs 6.2% growth in 2010) Luxembourg funds account for 75% of cross-border registrations, illustrating their strength as a crossborder market Luxembourg domiciled funds have a very strong presence in Asia, accounting for the majority of fund domiciliation in Hong Kong (59%), Singapore (52%), Taiwan (42%). However South Korea remains almost entirely closed, with 97% of funds domestically domiciled and the remaining 3% from Luxembourg. Both Argentina and Brazil are closed markets, with 100% of assets domestically domiciled. Chile is far more open, with Luxembourg domiciled funds representing 47% of funds, and a further 24% from other foreign domiciles. Peru is the most open of all, as just 7% of funds are domiciled domestically, 46% are domiciled in Luxembourg. Mexico is substantially closed as 98% of funds are domestic and the remaining 2% from other foreign domiciles. Within Europe Luxembourg has a very strong presence in Germany (54%), Italy (61%), The Netherlands (61%) and Spain (47%). France bucks this trend as 57% of funds are domestically domiciled, however Luxembourg still accounts for 30% of the remaining funds.

16 Agenda 1. Introduction : Global Fund Market 2. Cross-border distribution trends 3. Main fund domiciles

17 Main fund domiciles Comparison Luxembourg-Dublin-Cayman Questions Ireland Luxembourg Cayman Service Providers No of international administrators full mutual fund administrator licenses No of law firms Stock Exchange Name No of funds listed Tax Tax environment - what taxes are applicable at fund level? Irish Stock Exchange 3,009 funds and sub funds listed Tax exempt on income and capital gains. No withholding tax on distributions made to investors. No net asset tax. Luxembourg Stock Exchange 7,445 share classes listed issued by 483 legal entities Tax exempt on income and capital gains. No withholding tax on distributions made to investors. Annual subscription tax of 0.05% or 0.01% of net asset value. Cayman Islands Stock Exchange Over 300 issues of mutual funds No fund level tax imposed in the Cayman Islands.

18 Main fund domiciles Comparison Luxembourg-Dublin-Cayman Questions Ireland Luxembourg Cayman Regulation Name of regulatory body Irish Financial Regulator Commission de Surveillance du Secteur Financier (CSSF) Cayman Islands Monetary Authority ( CIMA ) Available fund/legal structures (Unit trust, investment company etc.) Unit Trust Common Contractual Fund Investment Company Investment Limited Partnership Investment Company (SICAV) Common Fund (FCP) Any company, trust or partnership incorporated or established in the Cayman Islands, including: Exempted company registered as SPC registered as LDC Exempted limited partnership Unit trust Categories of regulated funds (i.e. UCITS, QIF etc.) UCITS funds Non UCITS Professional Investor Funds Qualifying Investor Funds Closed-ended Funds UCITS funds Part II UCIs SIFs (specialized investment funds) SICARs (investment companies in risk capital) Registered funds Administered funds Licensed funds

19 Main fund domiciles Comparison Luxembourg-Dublin-Cayman Questions Ireland Luxembourg Cayman Promoter/Capital Requirements Information Is promoter approval required? What are the capital requirements for a fund promoter? Yes EUR 635,000 Yes for UCITS, Part II UCIs No for SIFs and SICARs EUR 8,000,000 (for UCITS and Part II UCIs open to the retail public) with exceptions No N/A

20 Main fund domiciles Comparison Luxembourg-Dublin-Cayman Questions Ireland Luxembourg Cayman Others Market Stats Locally domiciled funds UCITS AuM (Nov-11) : EUR 783 bn # sub-funds (Nov-11) : 3,045 Non-UCITS AuM (Nov-11) : EUR 225 bn # sub-funds (Nov-11) : 1,962 Funds administered only (Non domiciled) AuM (Sept-11) : EUR 820 bn # sub-funds (Sept-11) : 6,442 Locally domiciled funds UCITS AuM (Nov-11) : EUR 1,623.4 bn # funds* (Nov-11) : 1,862 Non-UCITS AuM (Nov-11) : EUR 436 bn # funds* (Nov-11) : 1,971 *13,328 sub-funds in total Funds administered only (Non domiciled) Hedge funds AuM (Jun-11) : EUR 35.4 bn # sub-funds (Jun-11) : 148 Fund of hedge funds AuM (Jun-11) : EUR 25.4 bn # sub-funds (Jun-11) : 557 Regulated funds AuM (Est.) : USD 2,300 bn Registered (Dec-11) : 8,714 Administered (Dec-11) : 424 Licensed (Dec-11) : 120