Tax tailwinds are drawing the Swiss into domestically domiciled funds, setting them apart from investors in other European countries who lean more towards Luxembourg.
Morningstar estimates that assets of actively managed funds domiciled in Switzerland totaled CHF 710.8 billion in 2023, up 36% from 2018. This compares with a 10.5% increase for foreign-listed funds sold into Switzerland.
But a curious discrepancy remains. Although 52.5% of Swiss-owned funds’ assets are held in products domiciled in Switzerland, only 18.3% (1,912) of actively managed funds available for purchase in the country are locally domiciled.