The total net assets of undertakings for collective investment (UCIs), specialised investment funds (Sifs) and investment companies in risk capital (Sicars) stood at €5,007.901bn as at 31 October 2023, the financial regulator Commission de Surveillance du Secteur Financier (CSSF) announced in a .

This is a decrease of 2.15% over one month and a decrease of 1.12% over the last 12 months. As at the end of September 2023, total net assets amounted to €5,117.868bn, noted the CSSF, meaning Luxembourg’s UCI industry saw a drop of €109.967bn in October. This follows a decline of €77.777bn during the .

Most of this decrease (€99.583bn, or -1.95%) was due to the negative development of financial markets; the rest (€10.384bn, or -0.20%) represents the sum of negative net capital outflows.

“All the major equity markets posted significantly negative performances in October, mainly caused by indicators showing a resilient US economy, which raised concerns that the Fed might delay its first interest rates cut or increase rates further, whereas economic indicators for Europe are pointing to a possible recession,” the CSSF added in its press release. “The outbreak of the Israel-Hamas conflict also negatively impacted investor confidence driving flows into less risky assets amid fears of a revival of the geopolitical tensions in the Middle East.”

14,058 active fund units

There were 3,303 undertakings for collective investment recorded at the end of October, a decrease of 16 compared to September (3,319). 2,159 entities used an umbrella structure, representing 12,914 sub-funds, said the CSSF. With the additional 1,144 entities that had a “traditional” UCI structure, the total number of active fund units comes to 14,058.