PwC Luxembourg’s 2018 barometer on management companies (ManCos) is out and the results continue to look good for both authorised AIFMs and UCITS ManCos based in the Grand Duchy.

The annual ManCo index measures activities of management companies in Luxembourg based on the evolution of their assets under management (AuM), the number of structures and the number of employees in UCITS ManCos. This year’s index has also taken into consideration ManCos with AIFM licenses, given their growing relevance in the country.

In December 2017, the index marked 195 points which translates into a significant growth of 6.3% over a year, the highest level ever reached. This remarkable growth has a twofold explanation: by the last quarter of 2017, there was a 12.7% rise in the AuM while employment in UCITS ManCos also saw a sharp increase reaching 4,344 employees in December (compared to 4,039 the year before).

The rise in the number of AIFM licensed ManCos was slower than the UCITS, the latter growing by 1%. This is in contrast with the previous year when ManCos with an AIFM license had, for the first time ever, outpaced the number of UCITS structures. However, the number of SuperManCos (carrying both UCITS and AIFM licenses) remained stable in 2017 at 124.

A new development, this year, is the looming Brexit, which, according to the index, will have a positive impact on the Luxembourg fund industry and will possibly prompt a rise in the number and AuM of Luxembourgish ManCos, leading also to a growth in ManCos’ employment.

As Laurent Carême, director at PwC Luxembourg explained, “Luxembourg is sure to benefit from its central location in Europe. Post-Brexit, the Grand Duchy is most likely to become the preferred location for UK-based companies who wouldn’t want to limit themselves geographically.”

The 2018 barometer is available on the PwC Luxembourg’s website.