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Luxembourg funds down 5% from all-time peak
Funds

Luxembourg funds down 5% from all-time peak

by Yannick HANSEN 17.05.2022
Funds registered in the Grand Duchy held assets worth €5.6 trillion at the end of March
In 2020 Luxembourg was the world's second-largest centre for regulated open-end funds
In 2020 Luxembourg was the world's second-largest centre for regulated open-end funds
Photo credit: Gerry Huberty

Funds registered in Luxembourg lost €340 billion in value since they reached an all-time peak of more than €5.9 trillion in December last year, the Association of the Luxembourg Fund Industry (ALFI) said on Tuesday.

Assets held were worth short of €5.6 trillion at the end of March - a downturn of more than 5% since the December high watermark - ALFI said, citing figures by the industry regulator CSSF.

The war in Ukraine caused market volatility, and high inflation and the automatic indexation of wages in Luxembourg also posed a concern to the fund industry, ALFI general director Claude Thommes said in February.

He had predicted that Luxembourg funds were likely to continue their losses in the first quarter after the industry registered a drop of €180 billion at the end of January compared to December.

However, the March 2022 level is still 5.7% higher than it was a year ago, ALFI said on Tuesday.

In 2020 Luxembourg was the world's second-largest centre for regulated open-end funds including mutual, exchange-traded and institutional funds, according to the International Investment Funds Association.

ALFI represents more than 1,500 Luxembourg-domiciled investment funds, asset management companies and businesses that serve the sector including depositary banks, fund administrators, legal firms, tax advisors and accountants.


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