ALFI Study: Luxembourg Leads €8.5 Trillion Cross-Border Fund Market

The Association of the Luxembourg Fund Industry (ALFI) has released a study showing that cross-border investment fund assets reached a record €8.5 trillion in 2025, driven by growing global demand and increasing investor diversification.

The 2026 edition of the ALFI-Broadridge Cross-Border Distribution of Investment Funds Study provided a comprehensive analysis of the latest trends shaping the international distribution of UCITS and other cross-border fund vehicles.

The study found that cross-border assets climbed to €8.5 trillion in 2025, with a record 16% of them sourced from outside Europe. Luxembourg continued to lead the global cross-border landscape, representing 42% of worldwide cross-border assets under management. According to the report, the industry was becoming increasingly global, concentrated and competitive, driven by scale, ETF growth and evolving investor preferences.

The data also showed that, after Europe, the Asia-Pacific (APAC) region remained the strongest growth market, with Hong Kong, Singapore and Taiwan continuing to drive demand for cross-border investment products. Meanwhile, markets across the Middle East, Africa and Latin America increasingly adopted UCITS fund structures.

The study also pointed to a clear shift in investor behaviour. While North American equity exposure remained significant, investor flows increasingly favoured broader diversification, including European and emerging market equities. At the same time, new thematic areas linked to geopolitical resilience, security and defence gained traction, particularly through ETFs. Product innovation also continued to accelerate, with new fund launches closely aligned with evolving investor demand.

Britta Borneff, Chief Marketing Officer at ALFI, said: “Cross-border distribution is entering a new phase of maturity and internationalisation. Luxembourg continues to play a central role, supported by its robust regulatory framework, deep international expertise and strong distribution infrastructure. As investor demand evolves and markets become more complex, the ability to deliver trust, innovation and operational efficiency at scale will become increasingly important”.

Nigel Birch, VP Head of Global Data & Analytics at Broadridge Financial Solutions, added: “The cross-border industry continues to prove its resilience and global relevance. Investor demand is broadening geographically and becoming more selective, while scale and passive investing continue to reshape the competitive landscape. In this environment, high-quality market intelligence is essential to understand where flows are moving and which long-term trends are emerging”.

ALFI and Broadridge Financial Solutions will present the study findings in a webinar on Thursday 28 May 2026 at 10:00. To register, visit https://registrations.alfi.lu/Subscription/SubscriptionStep1?publicKey=9f69ec56d8db4a11b366adc14.