The Association of the Luxembourg Fund Industry has branded the LuxLeaks investigation as a targeted campaign against the country.
In a statement ALFI said there is no tax advantage by domiciling an investment fund in Luxembourg.
Last month the International Consortium of Investigative Journalists leaked the names of more than 340 multinational companies involved in the alleged global transfer pricing arrangements via confidential information about Luxembourg tax rulings from 2002 to 2010.
Camille Thommes, Director General of the Association of the Luxembourg Fund Industry, said: “Fund managers and international investors select Luxembourg as a domicile because of the track record and unequalled expertise of the investment fund industry in Luxembourg.
“Investment funds play no role in enabling people or companies to avoid tax: investors in Luxembourg investment funds will be essentially taxed in their home country, according to the local tax rules, on the income derived from their investment.
“It is difficult to get rid of the feeling that LuxLeaks is a targeted campaign against Luxembourg.”
More than 3,900 regulated funds are currently domiciled in Luxembourg with more than EUR3,000bn in assets under management at the end of 2014.