Destination Distribution: Navigating the world's fund distribution markets

August 20, 2026
  • Investor Services
Explore how investment fund distribution is evolving across key global markets. In this series, Killian Lonergan, Head of Distribution Intelligence, shares insights on market dynamics, regulation, investor trends and distribution opportunities in destinations around the world.

Coast to coast: distributing investment funds in Spain

Market size: The European Union’s (EU) fifth-largest economy, Spain is enjoying a business renaissance. It was the fastest-growing major economy in the bloc in 2025 and its well-established asset management industry has also recorded steady growth in recent years. It currently oversees more than €715 billion in collective investment schemes (CIS)1. Spanish investment funds reached a total volume of €387.6 billion euros as of the first quarter of 20262.

Legal system: Spain’s legal framework provides comprehensive support for the investment sector and remains closely aligned with EU regulatory standards. The country has long transposed the UCITS and Alternative Investment Fund Managers Directive (AIFMD) regimes into national law. Policymakers are now working to implement AIFMD II, with formal adoption expected in the fourth quarter of this year3.

Regulator: Established in 1988, the National Securities Market Commission (CNMV) is Spain’s financial markets regulator. The CNMV supervises and inspects Spanish securities markets and the participants that operate within them. Its core objectives include promoting market transparency, supporting the proper formation of prices, and protecting investors4.

Permitted fund structures: Spain supports a broad range of investment vehicles, including:

  • UCITS
  • Alternative Investment Funds (AIFs)
  • European Long-Term Investment Funds (ELTIFs)
  • Collective investment schemes
  • Hedge funds
  • Private equity funds
  • Real estate funds
  • Distribution intelligence

Killian's Comments

Prospects: Spain offers opportunities across both domestic and international investor segments. Pension funds, venture capital firms, and retail investors all contribute to a dynamic and evolving investment landscape. The Spanish government recently unveiled its Spain Grows Fund, a public-private partnership designed to mobilize approximately €120 billion of investment to support economic growth and modernize the country’s productive sectors5.

Client types: Fund managers can access a diverse investor base that includes:      

  • Institutional investors, including pension funds and insurance companies
  • Hedge funds
  • Endowment funds
  • Retail investors
  • High-net-worth investors

Distribution channels: Private banks continue to dominate retail fund distribution in Spain. Independent financial advisors (EAFIs) also play a significant role, while insurance companies account for asmaller but meaningful share of the market.

Digital distribution channels are gaining traction. Much local attention is currently centered on the Madrid-based digital fund distribution network Allfunds, and the likely impacts of its acquisition by German finance giant Deutsche Börse Group.

Elsewhere, robo-advisors and neobanks6 are playing an increasingly important role in connecting investors with funds. 

1Deloitte. Reshaping Spain's investment landscape: key insights. 06 March 2025

2Memesita! Spanish Investment Funds Hit 26.7% of Spain’s GDP. 21 May 2026.

3CMS. AIFMD II Implementation in Spain. 28 May 2026.

4CNMV. CNMV function. 19.08.2026.

5Government of Spain – Spain Grows Investment Initiative, 2025.

6Neobanks are financial technology companies which provide digital only online banking services, often without physical branches.

Roaring trade: distributing investment funds in Singapore

Market size: The Republic of Singapore is a large highly developed, sophisticated island state economy and major financial hub in the Asia-Pacific region. Its main trading partners include the US, EU, mainland China, and Japan.

The various authorized and recognized unit trusts registered for sale in Singapore posted net inflows of SGD 3.2 billion in the first quarter of 2026, as compared to net outflows of SGD 158.78 million in the previous quarter1.

More widely, Singapore’s banking, insurance, and asset and wealth management sectors have seen significant growth in recent years.

According to the Monetary Authority of Singapore (MAS), assets under management grew 10% to S$6.7 trillion2 last year.

Legal system: Based on English common law, Singaporean law employs local practices designed to ensure the system has strong checks and balances to foster a robust separation of powers.

Regulator: MAS is a pragmatic and supportive regulator keen to expand the national investment industry.

Permitted fund structures: Investment funds available for sale in Singapore include:

  • Unit trusts
  • Exchange-traded funds (ETFs) and UCITS ETFs
  • Variable capital companies
  • Real estate investment trusts (REITs)
  • Hedge funds
  • Private equity funds

Killian's Comments

Prospects: In February the MAS announced it would expand its Equity Market Development Programme (EQDP) from S$5 billion to S$6.5 billion3 as part of wider efforts to develop Singapore’s local fund management industry. The MAS hopes the expansion of the EQDP will attract more high-quality asset managers likely to invest in Singaporean equities.

Client types: Sovereign wealth funds, pension funds, hedge funds, high-net-worth individuals and families, and retail investors. Some bespoke single private sponsor investments (so-called ‘funds-of-one’) may also present local opportunities.

Distribution channels: Private banks dominate fund flows in Singapore, especially for offshore funds, though there is a growing trend for family offices to invest in European domiciled products.

Retail banks and platforms provide scale but with thinner margins and more selective access. Although digital platforms and robo-advisors have grown quickly, they have not (yet) displaced traditional advisory channels in terms of assets under management accumulation.

Singapore is known in the region as one of the most forward-thinking centers in terms of fund distribution in the digital space. Many managers are looking to Singapore as a starting point to grow their digital footprint.

Singapore distributors increasingly behave like asset allocators, not just sales platforms. They actively curate product shelves and remove funds that lack momentum, underperform peers, or create operational complexity. As a result, the shelf life of some funds can be as short as 12 months.

1IMAS/Morningstar. Singapore Fund Flows Report. Q1 2026.

2The Straits Times. Assets under management in Singapore climb 10% to $6.7 trillion in 2025. 28 July 2026

3Hubbis. Monetary Authority of Singapore, MAS Announces Expansion of Equity Market Development Programme, 12 February 2026

Middle Eastern promise? Distributing funds in the UAE

Market size: The UAE economy is forecast to exceed 3.1% growth in 2026, driven by diversification and investment. The financial value of the UAE mutual fund market reached $5 billion in size in 2025 and is expected to hit $9.23 billion by 20311.

Founded in 1971, the UAE is home to sovereign wealth funds such as the Abu Dhabi Investment Authority and has seen significant growth in asset management and related opportunities over time. Gulf sovereign wealth fund assets under management (AUM) are forecast to reach GBP18 trillion by 20302.

Legal system: UAE law is based on Islamic Shariah law.

Regulator: The UAE Capital Markets Authority (CMA) replaced the UAE Securities and Commodities Authority (SCA) as federal authority in January 2026. It is responsible for regulating the financial sector in a region consisting of seven emirates. Its regulation includes the issuance and trading of securities, the conduct of financial activities, and the supervision of financial institutions.

Permitted fund structures: The types of investment funds on sale in the UAE include:

  • Mutual funds
  • Hedge funds
  • Exchange traded funds (ETFs)
  • Private equity funds
  • Real estate investment trusts (REITs)
  • Shariah-compliant funds

Killian's comments

Prospects: Notwithstanding some investment restrictions and background geopolitical events, regional centers such as the Dubai International Financial Centre (DIFC) are working to foster a supportive business environment for global companies. The UAE offers a favorable tax regime for foreign entrants.

That said UAE regulatory watchdog the SCA has effectively blocked the direct promotion of foreign funds such as UCITS products to onshore retail investors3.

The change could drive new demand for UAE-domiciled fund solutions. While UCITS type arrangements can still be accessed via feeder funds, some operational aspects, such as striking timely Net Asset Values for them have, reportedly, proved challenging.

Client types: Segregated mandates and Shariah-based funds present significant opportunities for investment firms and their service providers.

Specialized funds: Current regulations introduced in April 2023 also permit categories of specialized funds4 within the market such as:

  • Real estate development funds
  • Precious metal funds
  • Commodities investment funds
  • Direct financing funds
  • Charity investment funds
  • Protected cell funds
  • Charity investment funds

Distribution channels: The market has already seen some global asset managers partner with UAE based firms to explore the options to create and distribute locally domiciled funds but strict rules apply. Foreign investment managers seeking to distribute products in the UAE cannot do so without being either authorized under a Capital Market Authority (CMA) category 5 license or partnering with a distributor that holds this qualification.

The promotion of foreign funds is restricted to verified professional, not retail, investors meeting specific asset thresholds such as family offices, trustees, and institutional entities.

1Ken Research. UAE Mutual Fund Assets Market. July 2026.

2Deloitte. Deloitte Middle East report: Gulf Sovereign Wealth Funds lead global growth as assets forecast to reach USD 18 trillion by 2030. 20 March 2025.

3Exams Academy. Understanding SCA Regulations on Foreign-Owned Funds in the UAE. 03 June 2026.

4Hadef & Partners. New UAE Investment Funds Regime. 13 March 2023.

Germany: Strength in depth

Germany fact file: Germany is the largest distribution market for funds in the European Union (EU). Its major financial hub is Frankfurt, home of the European Central Bank (ECB).

Legal system: The legal framework for investment funds in Germany is based on the German Capita Code (KAGB). The KAGB is responsible for implementing the UCITS Directive and the Alternative Investment Funds Managers Directive (AIFMD) into domestic law1.

Regulator: The German Federal Financial Supervisory Authority (BaFin) is the integrated financial supervisor for banking, insurance, and securities markets. Understanding and adhering to BaFin-Compliance is a pre-requisite for success in the German investment market. BaFin's supervisory approach is increasingly data driven and technologically advanced. It is a strong advocate of the benefits of introducing advanced regulatory technology (RegTech) to boost compliance resilience.

Market size: A thriving German investment fund market continues to see significant growth which is likely to be further boosted by national pension reforms (See ‘Prospects’ section below).

The size of the market is expected to reach $5.87 billion by 20322. As just one measure of its investment market growth, the German open ended fund industry recorded net inflows of nearly €80 billion in the first half of 20263 buoyed partly by strong ETF sales.

Permitted fund structures: Types of investment funds permitted for distribution in Germany include:  

  • UCITS
  • Exchange traded funds (ETFs)
  • Alternative Investment Funds (AIFs)
  • Bond funds
  • Mixed funds
  • Real estate investment trusts (REITs)
  • Hedge funds
  • Private equity funds and limited partnerships

Killian’s comments

Prospects: Pension reform is currently one of the biggest investment talking points in Germany. New legislation is set to bring the Altersvorsorgedepot (AVD), or retirement provision depot, into force from 1 January 2027 superseding the Riester model.

Under the new scheme, broader use of ETFs, individual stocks and actively managed funds will be permitted amid hopes this will improve long-term returns. S&P Global Ratings estimates the reform could generate €26-56 billion in additional annual net inflows4 once the system is fully operational.

More widely, distributing non-German investment funds to German investors is subject to complex requirements and requires careful consideration. Areas to watch include retail versus professional/semi-professional investor definitions, stringent rules on marketing and pre-marketing and investor related tax qualifying criteria and reporting.

Client types: The German market hosts many institutional investors (including pension funds and insurance companies), hedge funds, endowment funds, retail, and high net worth investors.

Retail investment is a major market in Germany. According to German funds industry group the BVI, 50 million German private investors in 21 million households invest their money in funds. German investors commonly do this directly by acquiring shares in mutual funds for their portfolio or indirectly by paying contributions into life insurance policies or occupational pension schemes5.

Distribution channels: Germany has one of the most advanced retail fund distribution markets in Europe for products such as ETFs. These products have seen many savers switch from low yielding bank accounts to investment in ETF based accounts or ‘sparplans’.

While traditional banking partnerships, financial advisor networks and pension savings channels all have an important role to play in local distribution, other platforms are disrupting the market.

Many German investors are increasing tech savvy and digital distribution platforms and robo-advisors are helping to transform the ways UCITS funds reach their target audience. Neobrokers such as Trade Republic and Scalable Capital are also gaining ground.

 

1Chambers and Partners. Investment funds 2025

2Verified Market Research. Germany Mutual Funds Market Valuation – 2026-2032. August 2025.

3Ignites Europe. German fund inflows reach €80bn in first half. 12 August 2026.

4S&P Global.Germany’s pension reform offers major business potential. 27 April 2026.

5BVI website as at 12 August 2026.

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