PwC Luxembourg publishes Global Fund Distribution Poster 2023

PwC Luxembourg is delighted to present the 23rd edition of the annual Global Fund Distribution (GFD) poster, showcasing the evolution of cross border funds and distribution in 2022. 

Since its first edition, the annual poster has become a reference tool for asset managers who need a quick overview of the global cross-border fund market. This year's edition showcases the resilience of the cross-border fund distribution space in the light of significant macroeconomic volatility. 

Highlights of the report include: 

Asset Managers: The top 5 asset management companies for cross-border distribution funds worldwide are Franklin Templeton, BlackRock, Schroders, HSBC Holdings and UBS Group. Franklin Templeton is once again the leading asset manager with their cross-border funds distributed in 9 more countries than the no. 2 ranked BlackRock. For all 5 companies, the first home country domicile of choice is Luxembourg. 

Cross Border Investment Funds: 14,607 cross-border investment funds accounted for 138,467 registrations globally as of end-2022. This represents a 2.9% growth in the number of cross-border funds and a 4.3% rise in registrations compared to the preceding year.

Cross Border Investment Fund Registrations: Despite significant macroeconomic volatility in 2022, reflected in meaningful decreases in both UCITS net fund sales and UCITS AuM, cross border investment fund registrations continued to increase. 10 year CAGR for registrations continues to outpace CAGR for the number of true cross-border funds over the same period. 

Fund Domicile (Luxembourg): Luxembourg remains the leading domicile for cross-border distribution with a 55% share of the market.  The number of cross-border funds domiciled in Luxembourg continued to increase by 1.4% from 7,516 funds in 2021 to 7,618 funds as at the end of 2022.

Asset Class: Equity funds lead in terms of asset class, boasting 7,301 funds, which accounted for 50% of the global cross-border fund market. Bond funds followed with 3,972 cross-border funds, making up 27% of the market. Multi-asset funds represented 10% of the market, while liquid alternatives and Money Market Funds (MMF) held 11% and 2% respectively.

Europe: Switzerland recorded the largest increase in the number of new registrations in 2022, with 749 funds being registered, bringing the total number of registrations to 10,025. However, Germany remains the top country in Europe in terms of total number of cross-border fund registrations, with 11,693 cross-border funds registered for sale. 

Asia Pacific: As per previous years, Singapore maintained its position as the top market in terms of new and total number of registrations in 2022, with 189 new registrations bringing the total number of registrations to 4,502.

Middle East: Saudi Arabia replaces Israel as the top market in terms of new registrations in 2022 with 254 new registrations. In terms of total number of registrations in the region, the UAE is still ranked first with 370 funds.

Americas: Chile maintains its leading position within the Americas in terms of total number of registrations, with 1,813 funds registered for sale as of end 2022 and 60 new registrations. Sint Maarten and Curacao recorded the largest increases in fund registrations, each 56 new registrations. 

Africa: In terms of the total number of funds registered for sale, South Africa continues to lead the continent with 27 new registrations equalling to a total of 310 funds registered for sale. 

Robert Glover, Partner, Global Fund Distribution at PwC Luxembourg, states: “While the effects of a rapidly changing macroeconomic environment are particularly evident with regard to UCITS AuM & net sales, the overall distribution landscape continues to grow, with Luxembourg retaining a significant lead as a domicile of choice for cross border UCITS. Encouragingly, the Grand Duchy continued to make headway in the AIF space at a time when other centres saw a decline.”

The full 2023 edition of the GFD Poster is available here.