Nearly one-fifth of assets under management in Luxembourg-domiciled investment funds are overseen by third-party management companies, according to PwC Luxembourg’s latest ManCo barometer. The survey suggests that outsourced management and regulatory compliance are gaining ground as the fund industry experience more demanding governance, technology and compliance requirements. Assets under management overseen by management companies amounted to €6.3bn at the end of last year, up 7.8% from a year earlier. PwC says the trend is being driven by the growth of alternative funds, stricter substance rules and valuation controls, while most ManCo businesses have been investing in digitalisation.
