Ireland and Luxembourg have surged ahead in the investment funds market in recent years. Camilla Spielman asks whether the UK can catch up
Many participants in the open-ended investments funds arena have become increasingly concerned in recent years about the UK industry’s competitive position in relation to Luxembourg and Dublin. In October 2006, KPMG produced a report entitled, ‘Taxation and the Competitiveness of UK Funds’ for the Investment Management Association (IMA), the fund industry body. This report confirmed that the offshore fund centres in Luxembourg and Dublin have grown significantly over the last 10 to 15 years, and have become the leading European Union (EU) locations for funds intended to be sold internationally. Luxembourg has expanded principally as a base for retail funds, which are sold cross-border in Europe and beyond. In contrast, Ireland’s growth has been based on more specialist funds aimed primarily at institutional investors. UK-based funds, meanwhile, have grown, but at a far slower rate.
