On Tuesday 13 October 2026, FE fundinfo published the results of a survey of around 200 senior asset managers in the UK, Switzerland and Luxembourg which showed Luxembourg asset managers see data gaps and competition as key growth pressures.
The research, undertaken by London-based market researcher Censuswide on behalf of FE fundinfo and in partnership with Resonance, was conducted between 29 May and 6 June 2026 and revealed that data fragmentation has emerged as the leading product distribution challenge for Luxembourg-based asset managers, and highlights the growing operational pressures facing Luxembourg’s cross-border fund centres.
The 2026 Asset Managers Survey found that 34% of respondents in the Grand Duchy identified data fragmentation and siloed systems as one of their biggest product distribution challenges. This compares with 27% in the UK and 20% in Switzerland.
Across the full survey, 69% of respondents said the speed and accuracy of fund data are becoming increasingly important differentiators when winning and retaining distribution partners. At the same time, 65% said fragmented fund data is preventing their organisation from improving operational efficiency.
“Luxembourg’s fund industry has long been defined by its cross-border reach,” said Antoine Capone, Country Head for Luxembourg at FE fundinfo.
“This research shows that the next stage of competitiveness will depend not only on product innovation or market access, but also on the ability to move accurate, consistent and timely fund data across an increasingly complex distribution ecosystem. Data infrastructure is becoming a strategic foundation for growth.”
Competition emerges as a stronger concern in Luxembourg
The research also found that Luxembourg-based asset managers are more concerned about competition than their UK and Swiss peers. More than four in ten (44%) of Luxembourg respondents identified increased competition as one of the biggest threats to the asset management industry over the next three years, compared with 32% in both the UK and Switzerland.
At business level, 32% of Luxembourg respondents cited achieving asset growth and net inflows as a key challenge. The same proportion cited market fragmentation across regions and platforms.
Half of Luxembourg respondents said greater EU-level supervisory convergence or centralised supervision would affect their organisation’s ability to launch and distribute funds efficiently, which suggests the importance of Luxembourg’s regulatory framework and cross-border fund expertise to the industry’s competitiveness.
The findings point to a market where growth remains available but is harder to capture. Distribution access, platform requirements, regulatory obligations and investor expectations are all adding complexity to how firms bring products to market and compete for flows.
Luxembourg firms show relatively advanced AI adoption
Half of Luxembourg respondents said AI is either broadly used across operations (26%) or fully integrated into core business processes (24%). This compares with 25% in the UK and 44% in Switzerland.
Across the full survey, 99% of respondents said AI is already in use, being piloted, in early-stage exploration or under consideration within their organisation.
“Luxembourg’s findings point to broadly advanced AI adoption,” said Antoine Capone.
“However, the findings suggest that AI adoption in Luxembourg remains closely tied to broader technology and data challenges.”
The top barriers to scaling AI cited by Luxembourg respondents were cybersecurity or data privacy concerns, and legacy technology and integration challenges (30% each). Poor data quality or fragmented data followed closely, selected by 28%. Across the full survey, 64% of respondents agreed that AI will only deliver meaningful value if firms first improve the quality and structure of their underlying data.
Client servicing and reporting become investment priorities
In response to these pressures, Luxembourg asset managers appear to be prioritising investment in areas that support cross-border scale and client relationships. Client servicing and reporting is an investment priority for 40% of Luxembourg respondents.
Eight in ten (80%) Luxembourg respondents expect consolidation across the asset management industry to increase over the next twelve months.
As firms pursue growth, managing data, distribution, regulation and client servicing at scale is becoming central to competitiveness.
The full FE fundinfo Asset Managers Report 2026 is available at Asset Managers Report 2026: Growth by design.
