World Fund Day: Successful fund business of VP Bank Group

High-performing fund locations in Luxembourg and Liechtenstein

Luxembourg is the largest European fund location and the second most important location worldwide and an attractive domicile for setting up fund management companies. In Luxembourg, the fund industry has developed into an innovative and powerful economic sector over the last few decades. Luxembourg was the first member state to implement the EU Harmonization Directive (UCITS or UCITS Directive) into national law in 1988. More than 30 years later, Luxembourg funds managed financial assets of more than EUR 5 trillion at the end of Q4 2023.

The fund industry has also developed impressively in Liechtenstein in recent years. With future-oriented fund regulation, Liechtenstein has positioned itself as a dynamic, cross-border hub for private label funds, particularly in German-speaking Europe. Liechtenstein is now one of the most important cross-border hubs for private label funds in Europe.

VP Fund Solutions – successful for over 25 years

Within VP Bank Group, the fund business is reported in the “Asset Servicing” business segment, which includes the fund management and custodian bank activities within VP Bank Group. The two fund management companies VP Fund Solutions (Luxembourg) SA and VP Fund Solutions (Liechtenstein) AG have been carrying out fund management activities for over 25 years. The custodian bank activities include the custodian bank functions of VP Bank AG, Liechtenstein and VP Bank (Luxembourg) SA.

At the end of 2023, VP Bank's asset servicing reported CHF 12.5 billion in assets under management. More than 94% of assets under management come from private label funds, while around 6% can be attributed to VP Bank products. Last year, VP Fund Solutions, as a sub-division of Asset Servicing, recorded a new high of 90 customers at both locations, Luxembourg and Liechtenstein, as well as around 266 funds.

Excellent fund products

Proof of the high-quality standards is the fact that fund products from the VP Fund Solutions platform have repeatedly won international awards. After several awards in the last two years, VP Fund Solutions was awarded the Germany 2024 Lipper Fund Award in April 2024 for two funds in the “Absolute Return EUR High” category. This award recognises funds and fund management companies for their consistently strong risk-adjusted performance compared to their competitors.

Wolfdieter Schnee, Head of Fund Client & Investment Services at VP Bank Group: “Last year, the Asset Servicing division of VP Bank Group launched further successful fund projects and acquired new, renowned and promising clients, as well as a significant increase in the assets under management assets achieved. We are actively driving forward Asset Servicing’s growth strategy with further international initiatives in order to further expand our existing service offering in Europe and Asia.”