The total net assets of undertakings for collective investment, including UCIs subject to the 2010 Law, specialised investment funds (Sifs) and investment companies in risk capital (Sicars), stood at €5,665.58bn as at 31 October 2024, the Luxembourg Financial Sector Supervisory Commission (CSSF) said in a issued on 29 November.

Luxembourg’s UCI industry (essentially, mutual funds) saw an increase of €6.036bn during the month of October, said the CSSF. That represents an increase of 0.11% from the previous month (when net assets stood at €5,659.544bn). This is due to the sum of positive net capital investments of €18.007bn (0.32%) and of the negative development of financial markets amounting to €11.971bn (-0.21%).

UCI net assets have gone up every month (except April) this year. Over the last 12 months, the volume of net assets has increased by 13.13%.

“The economic data published during the month was contrasted between a US economy still robust and growing concerns in Europe, mostly due to a decline in the automobile sector in Germany,” noted the CSSF in its communiqué. “Financial markets however gradually moved their focus to the upcoming US elections and by the end of the month reflected a high probability of victory of the Republican candidate, with significant effects for financial markets, since its programme is mostly associated with higher growth and inflation, as well as greater uncertainty. In that context, major repricing occurred, notably on the foreign exchange markets, with the appreciation of the US dollar against the euro by almost 3%. Against this backdrop, the European equities category reported the largest losses. The performances of the other equity categories are also mostly due to currency effects, such as the depreciation of the yen against the euro by almost 4%. Asian equities are the exception as the negative performance is mostly explained by doubts on the supporting measures announced last month in China.”

13,707 fund units

There were 3,179 undertakings for collective investment recorded at the end of October, a decrease of 15 compared to September (3,194). 2,093 entities used an umbrella structure, representing 12,621 sub-funds, noted the CSSF in its press release. Adding the 1,086 entities that had a “traditional” UCI structure, the total number of active fund units in Luxembourg came to 13,707 (down from 13,723 from the month before).