Investors plunking down more cash and rising financial markets pushed up the amount of money managed by investment funds in the grand duchy last month to pre-crisis levels.
Assets under management at Luxembourg-domiciled funds rose from €4.62trn at the end of July to €4.7trn at the end of August, according to the Luxembourg Financial Sector Supervisory Commission (CSSF). That is a gain of 4.31% compared to August 2019, the financial regulator said on 29 September.
That means Luxembourg’s funds industry has fully regained the ground lost due to the covid-19 outbreak. The sector had €4.67trn in assets under management as of 29 February 2020, a figure which dipped down to €4.15trn at the end of March. The number has been slowly increasing since April.
The August 2020 monthly increase was due to investors placing a net €13.3bn in cash into Luxembourg-based funds and a €66bn rise in portfolio values, the CSSF stated. The vast majority (roughly 83%) of investors’ money was held in Ucits retail funds.