FINANCE - FUNDS

UCIs

Fund industry grows more than 20% in one year



View of Luxembourg City, the largest investment fund centre in Europe Photo: Shutterstock

View of Luxembourg City, the largest investment fund centre in Europe Photo: Shutterstock

Assets under management in Luxembourg’s fund industry reached €5.7trn at the end of October this year, up 22.33% compared to the same month in 2020.

After a slight dip in September, Luxembourg’s fund industry recovered in October, reaching a record €5,718bn, up from €5,601bn. This is an increase of 2.09% over one month, while the volume of net assets rose 22.33% over the last 12 months.

Despite supply chain shortages and high inflation, European equity performed well, supported by better than expected corporate earnings and the distribution of money from the EU recovery fund, said Luxembourg’s financial centre watchdog, the CSSF.

Equity undertakings for collective investment (UCI) categories registered an overall positive net capital investment, the CSSF said. Only Japanese (-2.39%) and Latin American equities (-7.56%) fell.

In Japan, the appointment of a new prime minister--Fumio Kishida, the second in as many years, and a strong depreciation of the yen against the euro, shifted this category into negative territory.

Political uncertainties and losses on Brazilian and Mexican equity markets negatively impacted Latin American equities.

Despite the increase in assets, the number of UCIs has steadily decreased, from 3,636 in October last year to 3,518 the same month this year. Including sub-funds, a total of 14,468 fund units were active in the financial centre at the end of October 2021.

Luxembourg is the largest investment fund centre in Europe and second in the world, behind the US.