UCIS KEY MILESTONE OF 6.1 TRILLION EUR

Luxembourg’s investment fund industry has crossed a key milestone: assets under management in UCIs reached €6.1 trillion as of end-October 2025 (CSSF data), up a robust +2.28% month-on-month and +8.77% year-on-year.

October’s €137 billion increase was largely performance-driven, with favourable markets contributing €115 billion (+1.91%) and net subscriptions adding €22 billion (+0.37%). The fund universe remained steady at 3,069 UCIs comprising 13,369 compartments.

Equity funds posted strong gains amid renewed risk appetite, fuelled by the US-China rare-earth trade truce and ongoing AI enthusiasm. Japanese equities led performance on prospects of looser fiscal and monetary policy, while US equities were bolstered by solid earnings, a second 25 bps Fed cut, and Nvidia briefly exceeding $5 trillion market cap. Despite these drivers, profit-taking triggered selective outflows from global, US, and Asia ex-Japan equity strategies.

Fixed-income funds generated consistent positive returns, supported by declining eurozone and US sovereign yields, contained credit spreads, and a firmer US dollar. Bond funds overall attracted net inflows, though USD money-market vehicles and certain USD and global bond strategies experienced targeted redemptions.

Having firmly surpassed the €6 trillion mark, Luxembourg reinforces its status as Europe’s leading fund domicile and the world’s second-largest investment fund centre after the US, underpinned by strong market returns and sustained — albeit measured — institutional and manager inflows.

Do not hesitate to contact us should you want to have more information regarding the Luxembourg fund universe or plan to set up a Luxembourg structure.

Photo – Rosc Art

Browse All

Luxembourg faces 335,000 hires by 2040: why talent must become a national priority

Luxembourg is preparing for an unprecedented labour demand, with an estimated 335,000 hires needed by 2040—nearly 70% of today’s workforce. While its internationally diverse labour market is a strength, heavy reliance on foreign talent also creates vulnerability amid rising global competition. The Luxembourg Chamber of Commerce has issued 34 recommendations…

LuxDefence Asbl Launches: A Strategic Step for Europe’s Security in the National Defence Industry

The official launch of LuxDefence on November 24, 2025, marks a key milestone in strengthening Luxembourg’s defence-industrial position within Europe and NATO. The association, backed by EUR 1.2 billion in public investment, unites over 80 companies to support innovation, security, and European sovereignty. LuxDefence aims to represent Luxembourg’s defence sector,…

SFDR 2.0: Key Changes Ahead for Luxembourg Funds and Asset Managers

SFDR 2.0 introduces major updates for Luxembourg-based funds and asset managers, including a new product categorization system with clearer definitions. The revised rules simplify entity-level disclosures by removing some reporting obligations. Stricter sustainability standards will require 70% of assets to meet stated objectives and introduce sector exclusions. The changes also…

When a bonus becomes a legal right : a new reminder from the Luxembourg Court of Appeal

The Luxembourg Court of Appeal reaffirmed that a bonus paid consistently over several years can become a legally acquired right. Once established, employers cannot unilaterally reduce or remove it without the employee’s explicit consent. Collective agreements don’t override more favourable individual entitlements. This ruling is a wake-up call for employers…

Luxembourg introduces collective redress for consumers

Luxembourg has enacted a new law implementing EU Directive 2020/1828, allowing consumers to bring collective, or “class,” actions against unfair commercial practices. The procedure involves three stages: admissibility, remediation, and enforcement, ensuring claims are legitimate, liabilities are assessed, and compensation is distributed efficiently. The law simplifies access to justice for…

Browse All