The total net assets of undertakings for collective investment (UCIs) in Luxembourg increased by 0.47% in February 2025, reaching €5.957trn by the end of the month. That’s up from €5.929trn in January, the Luxembourg Financial Sector Supervisory Commission (CSSF) on 31 March 2025. Over the past year, net assets grew by 10.5%.
The Luxembourg UCI industry recorded a positive variation of €27.947bn in February. This resulted from net capital investments of €34.145bn, which accounted for a 0.58% increase, offset by a negative market performance amounting to €6.198bn, reflecting a 0.11% decline.
The number of UCIs increased slightly from 3,128 in January to 3,131 in February. Of these, 2,069 operated under an umbrella structure, covering 12,458 sub-funds. A further 1,062 UCIs maintained a traditional structure, bringing the total number of active fund units in Luxembourg to 13,520.
According to the CSSF, financial markets had a varied impact on different categories of UCIs. Equity markets faced ongoing pressure due to concerns about US trade tariffs and their potential effects on global economic growth. This uncertainty particularly affected large US technology stocks, leading to the weakest performance among developed markets. Meanwhile, European and eastern European equities outperformed, driven by optimism surrounding the possibility of a ceasefire in Ukraine. Japanese equities experienced notable losses, partly mitigated by the Japanese yen’s appreciation of more than 2% against the euro. Asian equities posted modest overall gains, though performance varied significantly by country. Chinese stocks, particularly those in artificial intelligence and technology, saw strong gains, while Indian and Taiwanese equities registered losses.
Fixed income UCIs performed positively across all categories, except for the US money market category, which was impacted by a slight depreciation of the US dollar against the euro. USD-denominated bonds delivered the strongest monthly performance, benefiting from declining US yields amid a flattening yield curve, despite widening credit spreads. Investor sentiment shifted from inflation concerns to economic growth risks, leading to increased demand for safer assets. European bonds also performed well, supported by slightly declining yields and tightening credit spreads. This trend was influenced by expectations of greater government spending on defence and hopes of a ceasefire in Ukraine.
All fixed income UCIs recorded positive net capital investment in February. The USD money market and global money market categories attracted the largest inflows.
In Luxembourg, 15 new UCIs were registered on the official list during February, while 12 UCIs were deregistered, the CSSF noted.