How VCCs will help Singapore become the 'Luxembourg of Asia'

IN 1988, the Grand Duchy of Luxembourg became the first country to implement the Undertakings for the Collective Investment in Transferable Securities (UCITS) Directive into national law, after the European Union issued the original UCITS regulations in 1985 creating a harmonised regime throughout Europe for the management and sale of mutual funds.

This first mover advantage established Luxembourg as a leading fund management hub, as international fund managers were able to leverage the significant cross-border opportunities and grow their fund management businesses throughout Europe and the rest of the world.

Today, Luxembourg has over 4.8 trillion euros (S$7.7 trillion) in assets under management (AUM), second only to the United States. The small European duchy handles 62 per cent of cross-border investment funds worldwide from over 70 countries, and 98 of the top 100 asset managers globally have funds domiciled in Luxembourg.