Written in collaboration with Carla Santos, a member of The Blog team.
If you’re reading this blog, chances are you know what global fund distribution (GFD) and cross-border fund distribution are—but we prefer to be sure.
As the name suggests, global fund distribution refers to the process of offering investment funds to investors worldwide, across multiple regions and regulatory frameworks—think Europe, Asia, the Americas, the Middle East. For example, a Luxembourg-domiciled fund distributed in Singapore, Chile, South Korea, and Canada.
Cross-border fund distribution, on the other hand, is a term often used in the European context. It typically refers to the marketing of funds under frameworks like the Undertaking for Collective Investment in Transferable Securities (UCITS) and the Alternative Investment Fund Managers Directive (AIFMD), which enable “passporting” across EU/EEA countries. For instance, that same Luxembourg fund being sold in France, Germany, and Italy. In short: all global fund distribution is cross-border—but not all cross-border distribution is global. Sometimes, it just means stepping into a few neighbouring markets.
Both are key to the asset management industry. They’re a win-win: investors get access to a wider range of investments, and asset managers can scale their products and reach new audiences. Of course, this comes with the challenge of navigating regulatory landscapes, legal nuances, and distribution channels across multiple jurisdictions. The good news? Some fund domiciles, notably Luxembourg and Ireland, offer frameworks that make this journey smoother.
Now, you might assume asset managers aim for quantity over quality, distributing as many funds as widely as possible. That may have been true—until now. The 2025 edition of our Global Fund Distribution Poster tells a different story: asset managers are shifting towards fewer funds with broader reach, rather than blanketing the globe with every product in their range.
In this blog, we highlight key insights from the Poster: how the fund distribution landscape is evolving, where funds are being registered and domiciled, the rise of Exchange-Traded Funds (ETFs), and how Europe—and Luxembourg—are positioned in this global playbook.
Cross-border fund distribution in 2025: plateau or pivot?
Looking back at the fund distribution landscape as of the end of 2024, it’s clear the industry is at a turning point.
For the first time in over ten years, the number of true cross-border funds has slightly dropped, down 0.5% year-on-year to 14,649. We define a true cross-border fund as one that is marketed in its home country plus at least two other countries.
But here’s the interesting part: total fund registrations actually went up by nearly 2%, hitting 143,244. This tells us asset managers are rethinking how they distribute funds globally.
Instead of trying to be everywhere with all products, they seem to be focusing on fewer funds that reach more jurisdictions. Underperforming or duplicated funds are terminated, while resources shift toward flagship products with broad distribution.
This trend toward consolidation is visible in the rise of mergers and acquisitions across the asset management industry, as firms aim for scale and efficiency. We’re seeing asset managers reshape their businesses to stay competitive and keep up in a fast-changing market.
A decade of growth in fund registrations
From 2014 to 2024, fund registrations nearly doubled: from around 83,500 to over 143,000. That’s an annual growth rate of 5.5%. Demand from institutional and retail investors for cross-border funds continues to be strong.
Regulations like the Cross-Border Distribution of Funds regulation (CBDF EU Regulation 2019/1156) have helped, removing certain local agent requirements and making it easier to access markets.
On average, true cross-border funds are now registered in around ten countries, up from eight a decade ago. However, only 30% are marketed in more than 15 countries, which shows that smaller asset managers still prefer targeted rather than broad distribution.
Where are funds being domiciled?
Luxembourg remains the top domicile for cross-border funds, with over half of all registrations and close to 75,000 recorded by the end of 2024. Its scale, infrastructure, and deep fund expertise keep it ahead even as managers streamline strategies.
We also see a clear move from public to private market funds, with investors looking at diversification and higher returns. Luxembourg is Europe’s top domicile for private market funds, which grew rapidly, namely thanks to flexible vehicles like Reserved Alternative Investment Funds (RAIFs) and special limited partnership (SCSps). With private market assets in Europe reaching EUR4 trillion in 2024, Luxembourg accounts for more than half of that total.
Ireland is strengthening its place in ETFs. Its cross-border ETF registrations grew 8.5% last year, giving it a 39% market share and making it the leading ETF domicile globally. Luxembourg is closing the gap with 21% of ETFs now domiciled there. Recent regulatory changes, such as removing the subscription tax on ETFs, and local initiatives are boosting Luxembourg’s attractiveness, especially for active and hybrid ETFs. Supported by a pragmatic regulator and experienced professionals, Luxembourg looks set for ETF growth.
ETFs are changing the game
ETFs now make up nearly a third of all cross-border funds, with over 52,000 registrations worldwide. This shift toward ETFs, especially active ones, is reshaping how investment products are created and sold across borders.
Luxembourg holds a solid position, but Ireland’s structural advantages are drawing global players focused on tax-efficient products.
Europe still at the centre with other markets developing
Europe remains the heart of cross-border fund distribution, adding nearly 2,400 new registrations in 2024. Hungary, Poland, and Slovakia saw the biggest jumps in 2024.
The UK experienced the sharpest decline, losing 244 registrations. This is tied to Brexit and managers weighing the costs/benefits of switching from the Temporary Marketing Permissions Regime* to the Overseas Fund Regime**.
Asia Pacific registrations fell slightly, down 1.9%, with Japan leading the drop. Singapore bucked the trend and continues to be the key regional hub with over 4,700 registrations.
The Middle East saw a strong surge, with registrations jumping 28.5% thanks largely to Saudi Arabia. The United Arab Emirates still leads the region with over 500 registrations.
Luxembourg’s next steps
Luxembourg remains Europe’s largest UCITS domicile, managing EUR4.8 trillion in assets and preferred by nearly two-thirds of leading cross-border asset managers.
Looking ahead, growth will likely come from deepening its role in private markets, improving Environmental, Social, and Governance (ESG) and Sustainable Finance Disclosure Regulation (SFDR) infrastructure, and streamlining onboarding for global ETF players.
Where do we go from here?
Cross-border fund distribution is no longer about simply growing the number of funds or countries. It’s about smart positioning: offering the right products in the right markets and making sure those markets deliver real results.
We see that the biggest asset managers are now authorised to market in over 50 countries. But the marketing authorisation alone isn’t enough to create traction with local investors. True success requires engagement, brand visibility, a strong distribution network, and a real match between product design and investor needs.
That makes for a complex balancing act. Asset managers need to stay agile within a complex regulatory landscape while keeping operations scalable and relevant to investors. The stakes are even higher for private market funds, especially as managers explore how to reach retail investors—a shift that requires new skills, partnerships, and education.
Want to dive deeper into the trends, data, and movements shaping the global fund landscape? Download our 2025 Global Fund Distribution Poster. Since its first edition, this annual poster has become a reference tool for asset managers, promoters, and asset servicers who need a quick overview of the global cross-border fund market.
Notes:
*The Temporary Marketing Permissions Regime (TMPR): a UK framework that allows certain European Economic Area-domiciled investment funds keep marketing their products in the UK for a limited time after Brexit, without needing full UK approval. It acts as a temporary bridge while funds adjust to the new regulatory landscape following the UK’s withdrawal from the EU.
**Overseas Fund Regime (OFR): a UK framework that allows allow certain investment funds established outside the UK to be promoted to UK investors, including retail clients, if they meet certain standards. Approved funds get similar treatment to authorised collective investment scheme established in the UK.
What we think
We’re entering an era where being global doesn’t mean being everywhere. It means being where it matters, with the right product, at the right time, and in the right structure.
Fewer funds are expected to do more. Luxembourg stands out not only for its scale but for its ability to adapt. Its pragmatic approach to private assets and active ETFs is key, but the real difference is the depth of local expertise. This ecosystem knows how to scale products globally, making Luxembourg a strong base for asset managers looking to expand worldwide.
