The UCITS brand celebrates its 25th birthday today, as the first UCITS directive was formally adopted on 20th December 1985. Almost exactly 25 years later, on 16th December 2010, the Luxembourg Parliament ratified UCITS IV. As was the case in 1985, Luxembourg is the first country in the EU to pass this new regulation into national law. A number of provisions (such as fiscal reliefs) will come into effect as soon as 1st January 2011.

In the years since its inception, UCITS has become a widely recognised symbol of quality and security. From its roots as a European investment fund product, it has expanded internationally and is increasingly well-known in Latin America, the Middle East and Asia.

Claude Kremer, Chairman of Alfi, commented: “UCITS is a success story for the European Union and asset managers based all over Europe and beyond. We are confident that with the support of all players, UCITS products will continue to expand their global reach. UCITS today stands for safety, transparency and cost-efficiency”.

Camille Thommes, Director General of Alfi, said: “UCITS have proved to be a pioneer ‘passporting’ device for funds. We are working to get it right, but believe it will be possible to replicate the success of UCITS when the AIFM Directive comes into effect. We also expect to see growth and consolidation within Luxembourg’s fund industry. Earlier this year, a study by Lipper FMI estimated that Luxembourg’s fund industry will grow at a rate of 10.4% over the next five years, resulting in assets of €2.6trn by 2014.”