Investment funds domiciled in Europe - statistics & facts

Investment funds are vehicles used to gather investor capital and collectively invest this capital in a portfolio of various financial securities. The country in which the fund is incorporated is the domicile country. Funds domiciled in Europe have a combined net asset worth of almost 20 trillion euros. These funds primarily fall into two categories, Alternative Investment Funds (AIFs) and Undertakings for Collective Investments in Transferable Securities (UCITS). AIFs typically do not invest in traditional products such as stocks, bonds, or cash securities. AIFs use collective funds from certified investors to invest in securities such as private equity, commodities, and hedge funds, among other types of securities. UCITS are mutual funds that are structured under the European commission. UCITS invest in a range of securities such as stocks and bonds. Due to the regulation of UCITS, these mutual funds are registered in Europe and can be sold worldwide. When net sales of a UCITS or AIFs are positive, this is reflective of more investors buying into the fund than the level of investment being taken out.

Choosing a fund domicile

The fund domicile is typically where the administration and management of the fund takes place. There are several crucial factors firms should consider when choosing a country of domicile. Financial costs may vary, often a physical presence is required in the domical country this may result in relocation costs or costs to set up an asset management company in Europe. Local corporate tax rates in Europe also vary and can add additional expense. Market access is also an important topic. AIFs and UCITS domiciled within the European Union (EU) have free access to all EU investors. This is in contrast to the UK where it is possible, however, significantly more difficult to market across EU member countries. Legal transparency and local regulations are also a factor. While many European countries both within and outside of the EU have strong regulatory systems, it is still an important consideration to evaluate when choosing a fund domicile, because local laws and regulations can impact a funds operation. The perceived corruption of European countries is a key factor to consider.

Fund performance

Luxembourg and Ireland are among the most popular EU member countries to be chosen as a fund domicile. Almost half of all European UCITS and AIFs net assets are domiciled in Luxembourg and Ireland. However, both countries have experienced a recent decline in growth rates of UCITS net assets. This is in contrast to countries such as Czechia, which experienced a positive growth rate. However, Czechia is currently home to some of the lowest levels of investment fund assets under management in Europe. A positive growth rate typically is a good sign when evaluating a fund's performance. However, it may not always directly reflect the size of the fund as typically growth may remain constant in more developed environments.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Feb 29, 2024

Key insights

Total number of investment funds in Luxembourg
14,101
Most common fund size in the Netherlands
More than 100m EUR
Investment fund assets as a percentage of Swedens' GDP
99.8%
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Editor’s Picks Current statistics on this topic

Market share in terms of net assets under management (AUM) of fund initiators in Luxembourg as of September 2023, by country of origin

Investment Funds

Market share of fund initiators in Luxembourg 2023, by country of origin

Net assets under management (AUM) of the UCITS industry in Belgium, Luxembourg and the Netherlands (Benelux) from 4th quarter 2015 to 3rd quarter 2023 (in million euros)

Investment Funds

Net AUM of UCITS investment funds in Belgium, Luxembourg and Netherlands 2015-2023

Net assets of domiciled funds in Ireland from 2018 to November 2023 (in trillion euros)

Investment Funds

Net assets of domiciled funds in Ireland 2018-2023

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