January 2021 was a symbolic date in the history of Luxembourg funds: it was the first time that the €5trn asset mark was crossed. The next milestone of €6trn appeared to be in sight. By 31 December 2021, the total had reached €5.859trn.

After that, it has been a downward spiral. Since the beginning of the year, assets under management have dropped by €821.55bn.

According to the figures published by the Luxembourg Financial Sector Supervisory Commission (CSSF) on 31 October 2022, the Luxembourg investment fund industry recorded a negative variation of €262.4bn in September. This decrease represents the sum of the negative net capital investments of €40.9bn and the negative evolution of the financial markets of €221.5bn (-4.18%). This negative evolution can be attributed to the Russian aggression in Ukraine, high inflation and the continuous rise in interest rates in recent months.

At the end of September, the CSSF counted 3,403 investment funds, compared to 3,413 the previous month.

In total, 2,221 entities have adopted an umbrella structure representing 13,186 compartments. If we add to this figure the 1,182 entities with a traditional fund structure, a total of 14,368 fund units were active in the grand duchy’s financial centre.

Originally published in French by and translated for Delano.