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Luxembourg has long played a leading role in the European asset management industry, particularly in liquid assets, with the UCITS framework making strong its reputation for regulatory excellence, since the early adoption. Recently, however, Ireland has become the main European attractive destination for liquid asset flows, pushing Luxembourg to expand its expertise in alternative investments such as private equity, infrastructure, and real estate. This change has strongly increased the Luxembourg’s position in alternatives, but the country now faces the challenge of reestablishing its presence in liquid assets. In this article, I’ll explore strategies Luxembourg can use to reestablish its presence in liquid assets and regain market space while strengthening its overall position.

Luxembourg’s historical success in liquid assets was supported by its early and strong adoption of the UCITS framework, establishing a robust reputation for investor protection, transparency, and a well-regulated environment, driven by the CSSF. UCITS products benefited from these principles, becoming synonymous with Luxembourg’s financial identity and drawing significant institutional interest. However, as regulation and operating costs have changed, Ireland took advantage by becoming a more efficient hub for UCITS, offering quicker approval times and predictable processes. Today, these factors have made a significant impact, positioning Ireland as the leading hub for listed products.