Combined strength: Luxembourg and your fund administrator

October 21, 2020

Luxembourg’s prominence as a fund hub is rooted in its reputation for stability, reliability and longevity. Here’s why you should look for those same attributes in your service provider.

When you think of Luxembourg from a financial standpoint, strength and stability immediately come to mind. For decades, the country has built trust and credibility with and within the investment community. Luxembourg has remained solid and dependable throughout the years – even as other financial centers staggered under crises, downturns, pandemics and economic turmoil.

Starting a fund in Luxembourg offers numerous advantages, which is why the jurisdiction ranks as the largest in Europe and second largest in the world. But to maximize its benefits, you need an administrator with financial strength and stability to match. In this article, we hope you will learn what sets Luxembourg apart and why you should select a service provider with a solid reputation, robust balance sheet and profitable business that endures over time.

What’s special about Luxembourg?

Several factors have enabled Luxembourg to thrive as a home for funds. Here are three of the most significant:

  • Reputation for reliability: Luxembourg’s strong reputation has grown from a government and regulatory approach that prioritizes innovation, pragmatism and efficiency. Officials have worked to maintain flexibility for the finance industry, which gives investors extreme confidence in the reliability of the Luxembourg product.
    “At its essence, Luxembourg is a brand,” says Didier Delvaux, country head of Luxembourg for U.S. Bank. “It’s a brand built on a reputation for being a stable domicile for mutual funds, and it’s a brand that reaches across the world. The sheer size of the business and the fact that, for more than 30 years, it’s remained largely untouched by any scandals or default is a testimony to the strength of that brand and the strength of that product range.” 
  • A future-focused outlook: The fund industry in Luxembourg stays focused on the future instead of resting on its laurels. The country continues to lead the way with sustainable investing and other innovation, such as the RAIF (Reserve Alternative Investment Fund) and the SCSp (partnership structure), along with tools to support those structures. “The industry here is constantly looking ahead in terms of ‘What are the next trends and the next opportunities?’ to continue to support and grow the industry,” said David Sload, managing director of Luxembourg for U.S. Bank
  • Credibility and integrity: The primary reason the Luxembourg reputation is so strong is that it bears the weight of credibility. There’s confidence that when the government rolls out a product, guideline or framework, it has integrity – that it will, in fact, be put into place. Investors trust new Luxembourg products because they emerge from a long lineage of other products that have been highly successful and highly resilient.

Financial strength in a service provider

Investors are drawn to Luxembourg products because of the strength of the country, government and industry. But what’s equally important, from a fund manager standpoint, is to find a local service provider that operates within the same framework of robustness, reliability and, most of all, trust.

“Many managers will actually specify that they want their provider in Luxembourg to be a big bank, because they want the reliability it brings,” said Didier. “They want to entrust their assets to a country that instills confidence. And within that country, they want a provider who’s robust and reliable as well.”

A financially strong administrator provides several key advantages:

  • Well-developed infrastructure: Strong providers have significant capital that enables them to make significant commitments in terms infrastructure, including human resources, systems resources and technology. Their stability permits a longer-term outlook, opposed to smaller firms with shorter-term outlooks and financial goals. 
  • Risk mitigation: Managers know a robust provider will have the capital to make the right investments to stay compliant with regulations. They know they’ll have the governance, framework and risk-management processes required to ensure compliance and minimize potential liabilities. 
  • High credit rating: Luxembourg has a AAA credit rating from S&P, the highest possible. Choosing a provider that also has a high credit rating reinforces that strength. This is highly attractive to managers looking to protect their investors’ assets.

By pairing the strength of Luxembourg with that of a stable service provider, you put your fund in a prime position to help promote its long-term success. Find an administrator with the right reputation, reliability and resources, and maximize the advantages that Luxembourg offers.

For more information on our Luxembourg fund servicing solutions, visit

Related content

High-yield bond issuance: how to avoid 5 common pain points

Crack the Swift code for sending international wires

10 ways a global custodian can support your growth

4 reasons your Luxembourg fund needs an in-market administrator

Luxembourg's thriving private debt market

The benefits of bundling services for Luxembourg regulated funds

The benefits of a full-service warehouse custodian

Key considerations for launching an ILP

Ask an expert Q&A: 3 US ETF trends and their impact in Europe

For small business growth, consider the international market

Rethinking European ETFs: Strategy wrappers and a means to an end

Case study: U.S. asset manager expands to Europe

6 risks you need to manage when expanding your global footprint

Combined strength: Luxembourg and your fund administrator

Easier onboarding: What to look for in an administrator

ESG-focused investing: A closer look at the disclosure regulation

Luxembourg funds: 5 indicators of efficient onboarding

Programme debt clients want reliable service – no matter where they’re based

Programme debt Q&A: U.S. issuers entering the European market

3 tips to maintain flexibility in supply chain management

The reciprocal benefits of a custodial partnership: A case study

Depositary services: A brief overview

Benefits of billing foreign customers in their own currency

3 innovative approaches to ESG investing in Europe

Administrator accountability: 5 questions to evaluate outsourcing risks

European outlook: Trustee experience more important than ever

Liquidity management: A renewed focus for European funds

Emerging trends in Europe: An outlook from multiple perspectives

The benefit of a multi-jurisdictional European trustee

Avoiding the pitfalls of warehouse lending

Complying with changes in fund regulations

4 benefits to paying foreign suppliers in their own currency

5 questions you should ask your custodian about outsourcing

Alternative investments: How to track returns and meet your goals

An asset manager’s secret to saving time and money

Middle-market direct lending: Obstacles and opportunities

Trends in economics, immigration and mobility policy

Unique requirements of large private equity firms

Ask an expert Q&A: 3 US ETF trends and their impact in Europe


U.S. Bank Global Fund Services is a wholly owned subsidiary of U.S. Bank, N. A. 

U.S. Bank Global Fund Services (Ireland) Limited is registered in Ireland with the Companies Registration Office Reg. No. 413707 and Registered Office: 24-26 City Quay, Dublin 2, Ireland. U.S. Bank Global Fund Services (Ireland) Limited is authorised and regulated by the Central Bank of Ireland under the Investment Intermediaries Act, 1995. 

U.S. Bank Global Fund Services (Guernsey) Limited is licensed under the Protection of Investors Law (Bailiwick of Guernsey), 1987, as amended by the Guernsey Financial Services Commission to conduct controlled investment business in the Bailiwick of Guernsey. 

U.S. Bank Global Fund Services (Luxembourg) S.a.r.l. is registered in Luxembourg with RCS number B238278 and Registered Office: Floor 3, K2 Ballade, 4, rue Albert Borschette, L-1246 Luxembourg. U.S. Bank Global Fund Services (Luxembourg) S.a.r.l. is authorised and regulated by the Commission de Surveillance du Secteur Financier. 

Investment products and services are:

U.S. Bank does not guarantee products, services or performance of its affiliates and third-party providers.

Start of disclosure content

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Mortgage, home equity and credit products are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC.