Cross-Border Distribution of UCITS

A CACEIS PRODUCT DEVELOPMENT PUBLICATION - 2011

CONTEXT

Graph 11: Evolution of Luxembourg and Ireland market share for cross-border fund registration

70,000

60,000

14% 11%

50,000

40,000

30,000

Luxembourg and Ireland currently account for nearly 90% of all worldwide cross- border funds.

75%

20,000

1.3

Legend

Luxembourg

10,000

0 number of cross-border fund registered Source: PWC, 2011

Other Ireland

2002 2003 2004 2005 2006 2007 2008 2009 2010 2001

At the end of 2010, according to PwC analysis on Lipper data, foreign registrations of Luxem- bourg funds amounted to almost 47,000. Graph 12 shows that Luxembourg-based funds re- present a good balance of all asset types.

Graph 12: Evolution of asset classes in the Luxembourg UCITS industry (1997-2009)

in € m

2,000,000

€ 1,592,370 m as at 31/12/09

Others (including fund of funds) Money Market Bond Balanced Equity

1,750,000

1,500,000

1,250,000

1,000,000

750,000

500,000

250,000

0

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

2007

2008

2009

Source: EFAMA, 2010

The emergence of Dublin as the second largest European hub for investment funds be- gan during the late eighties, with the launch of the IFSC (1987), in “part of the dilapidated docklands district said to have been so run-down it was avoided by even the city’s rats. Today, however, the area plays host to a cosmopolitan array of financial services players”, as quoted from a 2008 FT article 17 . Dublin has become the home of choice for many UCITS funds, Europe’s leading domicile for money market funds and the largest administration centre for exchange traded funds in Europe.

17 Source: Financial Times Fund Management, “Dublin shrugs off downturn blues”, by Ian Fraser, July 20 2008

Cross-border distribution of UCITS | page 23