Luxembourg’s financial regulator, the CSSF, announced in a press release on Wednesday 28 February that the Luxembourg UCI industry recorded a positive change, totalling €41.322bn in January 2024. Archive photo: Matic Zorman / Maison Moderne

Luxembourg’s financial regulator, the CSSF, announced in a press release on Wednesday 28 February that the Luxembourg UCI industry recorded a positive change, totalling €41.322bn in January 2024. Archive photo: Matic Zorman / Maison Moderne

In January 2024, Luxembourg’s undertakings for collective investment saw a 0.78% monthly increase in net assets amid varied performances across equity and fixed income categories.

Total assets under management in Luxembourg-based investment funds increased to €5,326.332bn as of 31 January 2024, marking a 0.78% increase from €5,285.010bn at the end of December 2023.

The data, released in a press statement by the Luxembourg Financial Sector Supervisory Commission (CSSF) on Wednesday 28 February 2024, encompasses mutual funds (undertakings for collective investment or UCIs), specialised investment funds (Sifs), and investment companies in risk capital (Sicars) for the month of January 2024.

According to the , the net increase in assets by €41.322bn was driven by a decrease in net capital investments by €5.828bn, which was more than compensated for by a significant boost of €47.150bn from favourable movements in the financial markets.

Equity markets

The CSSF stated that the equity markets experienced a surge, driven by positive economic signals and the potential impact of artificial intelligence, although gains were moderated by cautious statements from major central banks. The Japanese equity UCI category excelled despite adverse currency effects, while US equities also enjoyed gains due to favourable currency movements. Conversely, Asian equities, especially in China, faced substantial losses owing to ongoing economic difficulties.

Fixed income UCIs

Fixed income UCIs were impacted by the European Central Bank and the Federal Reserve’s less dovish tones, leading to revised expectations for interest rate cuts. Despite these pressures, most fixed income categories, except euro-denominated bonds, reported positive outcomes, supported by the US dollar’s appreciation against the euro.

Structural changes

The UCI industry saw subtle adjustments in January, with the total number of UCIs decreasing slightly from 3,274 to 3,269. This included the introduction of eight new collective investment undertakings and the deregistration of thirteen from the official list. The composition of the sector included 2,140 entities with an umbrella structure, representing 12,827 sub-funds. Alongside these, 1,129 entities maintained a traditional UCI structure, bringing the total to 13,956 active fund units within the financial centre.

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