Luxembourg funds lost €180bn in value in January
Funds registered in Luxembourg lost €180 billion in value in January and further losses are likely in the first quarter of the year, Claude Thommes, the director general of the Association of the Luxembourg Fund Industry (ALFI) said on Tuesday.
The war in Ukraine caused market volatility, and high inflation as well as the automatic indexation of wages in Luxembourg are also a concern for the fund industry, Thommes told public broadcaster 100,7.
The €180 billion downturn in assets under management is just 3% of the all-time high of €5.9 trillion that Luxembourg funds reached at the end of 2021.
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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