The Luxembourg fund industry has increased its assets under management to pass the €4 trillion mark.

The landmark €4.037 trillion level represents a 7.9% jump over the nine-months to 30 September, mainly due to net sales, according to The Association of the Luxembourg Fund Industry (ALFI).

"Luxembourg is the second largest fund domicile after the US. The growth of assets under management has been quite spectacular with the increase from €3 trillion to €4 trillion taking merely three years," said Denise Voss, Chairman of ALFI.

Voss said the growth was not only driven by retail UCITS funds, but also via alternative investment funds, particularly private equity and real estate.

"It clearly shows that people recognise the growing importance of investment funds in providing for their financial future," she added.

Luxembourg is the largest fund centre in Europe and comes in second globally behind the United States.

(Hannah Brenton, hannah.brenton@wort.lu, +352 4993 728)