Gaelle Attardo is Market Head of Financial Services BIIL – Financial Services Clients and David Burgos is Commercial Director of TMF Group
Please briefly introduce TMF Group to our AmCham newsletter audience and members.
As global businesses continue to expand into new markets, the need for seamless cross-border compliance and administrative infrastructure has never been greater. In this environment, Luxembourg has emerged as a vital hub for international investment, thanks to its regulatory stability, multilingual workforce, and position within the EU.
TMF Group operates at the heart of this ecosystem. With over 12,000 professionals across 87 jurisdictions, including more than 350 experts in Luxembourg, we support companies in navigating complex regulatory landscapes and managing operational obligations efficiently.
While our global reach allows us to support multinational strategies, our strength lies equally in our local expertise, enabling clients to respond to regional nuances with confidence.
What is the diversity scope and capitalization of US-funded assets managed within the Luxembourg financial sector?
Luxembourg is the world’s second-largest investment fund center after the United States, managing nearly EUR 6 trillion in assets. A significant portion of these are US-funded, reflecting deep transatlantic ties in the asset management space. The diversity of US-origin investments spans mutual funds, hedge funds, private equity and real estate, each leveraging Luxembourg’s robust regulatory environment and cross-border structuring advantages.
What makes Luxembourg particularly attractive to US fund sponsors is its ability to support a wide variety of fund strategies under both the UCITS and AIFMD frameworks, alongside efficient vehicle structuring for securitization and SPVs. This flexibility continues to draw interest from institutional investors and private capital alike.
The sector’s maturity is also evident in the supporting infrastructure: from fund administration and depositary services to regulatory compliance and investor reporting. These elements have helped Luxembourg become a trusted European entry point for US capital looking to access the EU market.
How important are these US-funded assets to the Luxembourg financial sector?
US-funded assets are a pillar of Luxembourg’s financial ecosystem. As a hub for cross-border fund distribution, Luxembourg is often the first point of entry for US asset managers looking to access the European market. This includes both retail-oriented UCITS funds and alternative strategies structured under AIFMD.
The importance of this connection is reflected in the scale: US-origin funds represent a significant portion of Luxembourg’s 5.6 trillion euros in assets under management, according to the Association of the Luxembourg Fund Industry (ALFI). These assets also support a wide-reaching infrastructure, from fund administration and custody services to regulatory and reporting functions, creating economic value and employment across the sector.
Their presence not only boosts the Luxembourg economy but also reinforces the country’s position as a bridge between the US and Europe. The ongoing collaboration between American investment firms and Luxembourg-based service providers underpins many of the innovations seen in fund structuring and compliance frameworks today.
What has been the history and evolution of US-funded assets to the Luxembourg financial sector?
The relationship between US investors and Luxembourg’s financial sector began gaining real momentum with the introduction of the UCITS directive in the 1980s, which allowed funds to be passported across the EU. This framework gave US asset managers a consistent and efficient way to distribute products throughout Europe, catalyzing a wave of fund launches in Luxembourg.
More recently, the Alternative Investment Fund Managers Directive (AIFMD) has broadened this appeal, supporting private equity, real estate, and hedge fund strategies — areas where many US managers are highly active. The result is a more diversified landscape, with US-origin investments now spanning both retail and institutional strategies.
This evolution highlights Luxembourg’s role not just as a domicile but as a strategic partner in global fund distribution. As regulation becomes more complex, the need for jurisdictional stability and deep expertise continues to make Luxembourg a compelling choice for American asset managers.
With a new US federal government in place for over six months, what are the risks and opportunities for the Luxembourg financial sector to gain or lose business?
Political transitions in the US often bring shifts in economic policy, regulation and trade relations, all of which can influence investor sentiment. A more globally engaged administration may drive cross-border investment flows, while inward-focused policies could dampen outbound capital.
For Luxembourg, the opportunity lies in remaining a stable and reliable platform for international fund distribution, regardless of shifts in US policy. Continued clarity around taxation, ESG regulation and fund passporting will be key factors in attracting and retaining US-sponsored funds.
The sector should also monitor US regulatory changes affecting alternative investments, private equity and digital assets. Luxembourg’s ability to offer compliant, responsive solutions in these areas will be a differentiator in the eyes of global investors navigating the new policy environment.
What positive initiatives could be introduced here in Luxembourg to enhance the attractiveness of the Luxembourg Financial sector in the eyes of US-funded assets?
Luxembourg has already taken meaningful steps, such as the recent reduction in corporate tax and the abolition of the subscription tax on ETFs, both of which enhance its competitiveness. Going forward, the country can build on this momentum in several ways.
For example, by simplifying cross-border onboarding for fund managers, especially smaller and mid-sized firms entering Europe.
Another key element would be to promote digital innovation in fund administration, leveraging fintech to improve efficiency and reporting accuracy.
Lastly, it is crucial to support talent development, particularly in areas like compliance and data analytics, which are increasingly important for US sponsors.
Continued dialogue between the public and private sectors is also essential to keep Luxembourg’s regulatory environment both rigorous and business-friendly.
For what reasons are you all in TMF Group excited and optimistic or discouraged and pessimistic about the Luxembourg Financial sectors future?
We’re optimistic about Luxembourg’s future for several reasons. First, the country’s proactive regulatory stance and openness to innovation have positioned it at the forefront of fund structuring.
Digital transformation is another reason for optimism. As fund managers increasingly seek data transparency and operational scalability, Luxembourg-based providers are adapting fast, with digital tools such as AI-driven solutions.
We also see strong momentum in ESG adoption. Luxembourg is becoming a hub for sustainable finance, with a growing number of funds aligning their portfolios with environmental and social goals. As a matter of fact, Luxembourg, together with the Nordic countries, have the highest market shares of Article 9 funds among European countries, according to The European Fund and Asset Management Association (EFAMA). And, more particularly, most cross-border Article 9 funds appear to be domiciled in Luxembourg.
While global volatility and regulatory complexity remain challenges, Luxembourg’s ability to evolve, combined with its strategic role in global finance, makes it a market with significant long-term promise.
As a significant international company in Luxembourg, if you could ask for three things from the Luxembourg government, what would you ask?
Firstly, to enhance regulatory clarity and consistency. Predictable regulation helps investors and service providers plan with confidence and manage cross-border obligations more effectively.
Secondly, to invest further in digital infrastructure. This includes both public and private sector support for digital onboarding, reporting, and data governance, key areas for the future of fund administration.
And last but not least, to expand support for talent mobility. Simplifying expat regimes, enhancing multilingual training, and strengthening ties with universities can help ensure a strong pipeline of skilled professionals, especially in niche areas like alternative investments.
These steps would support not only the fund industry but also Luxembourg’s broader competitiveness as a global financial centre.
If there was another question you would have liked us to ask you, please give us that question and your answer.
Q: How is technology transforming the way asset managers approach fund administration in Luxembourg?
A: Technology is redefining expectations around fund operations, with a growing emphasis on automation, data accuracy and transparency. In Luxembourg, we see increasing demand for digital platforms that can handle everything from NAV calculation to investor communication in real-time.
For US asset managers especially, digital tools reduce the friction of cross-border management, making reporting easier, reducing compliance risk and improving scalability. Luxembourg’s openness to fintech and regulatory innovation makes it an ideal testing ground for these advancements, and continued investment in this area will be key to maintaining its global edge.