CIFA Annual Review 2020
Cyprus Investment Funds Association Annual Review 2020
Cyprus Investment Funds Association Annual Review 2020
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Cyprus Investment Funds Association (<strong>CIFA</strong>)<br />
<strong>Annual</strong> <strong>Review</strong> <strong>2020</strong> 11<br />
Cross-Border Funds<br />
Home-domiciled European funds can be sold to investors at home (domestic<br />
funds) or abroad (cross-border funds). Net assets managed by European crossborder<br />
funds have grown strongly since 2009.<br />
The European cross-border fund market grew from €2.8 trillion - 39% of total net assets<br />
of European funds in 2009, to €7.8 trillion - 47% of the total fund market in 2019.<br />
Net Assets of Cross-Border and Domestic Funds<br />
(€ trillions, %)<br />
2.8<br />
39%<br />
3.7<br />
42%<br />
5.5<br />
44%<br />
6.6 6.6<br />
46% 46%<br />
47%<br />
4.3 5.2 7.0 7.9 7.7 8.7<br />
61% 58% 56% 54% 54%<br />
2009 2012 2015 2017 2018 2019<br />
7.1 8.9 12.5 14.5 14.3 16.6<br />
Domestic Funds / Cross-Border Funds<br />
Cross-border funds can be sold both within and outside Europe.<br />
The strong growth in the cross-border market in 2013-16 was mainly attributable to net<br />
sales of cross-border funds<br />
within Europe. In 2018 and 2019, net sales in Europe dropped significantly, as European<br />
investors reacted to the rise in economic and financial instability. At the same time,<br />
demand for European funds from investors in the rest of the world remained robust.<br />
Luxembourg and Ireland are the two largest cross-border fund domiciles in<br />
Europe.<br />
Together, these two fund domiciles accounted for 92% of the total European cross-border<br />
fund market. The vast majority of funds domiciled in other European countries are sold<br />
domestically.
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