Global situation of undertakings for collective investment at the end of October 2023

As at 31 October 2023, the total net assets of undertakings for collective investment, comprising UCIs subject to the 2010 Law, specialised investment funds and SICARs, amounted to EUR 5,007.901 billion compared to EUR 5,117.868 billion as at 30 September 2023, i.e. a decrease of 2.15% over one month. Over the last twelve months, the volume of net assets decreased by 1.12%.

The Luxembourg UCI industry thus registered a negative variation amounting to EUR 109.967 billion in October. This decrease represents the sum of negative net capital investments of EUR 10.384 billion (-0.20%) and of the negative development of financial markets amounting to EUR 99.583 billion (-1.95%).

The development of undertakings for collective investment is as follows:

The number of undertakings for collective investment (UCIs) taken into consideration totalled 3,303, against 3,319 the previous month. A total of 2,159 entities adopted an umbrella structure representing 12,914 sub-funds. Adding the 1,144 entities with a traditional UCI structure to that figure, a total of 14,058 fund units were active in the financial centre.

As regards the impact of financial markets on the main categories of undertakings for collective investment and the net capital investment in these UCIs, the following can be said for the month of October.

All the major equity markets posted significantly negative performances in October, mainly caused by indicators showing a resilient US economy, which raised concerns that the Fed might delay its first interest rates cut or increase rates further, whereas economic indicators for Europe are pointing to a possible recession. The outbreak of the Israel-Hamas conflict also negatively impacted investor confidence driving flows into less risky assets amid fears of a revival of the geopolitical tensions in the Middle East.

In October, all the equity UCI categories registered a negative capital investment.

_{* Variation in % of Net Assets in EUR as compared to the previous month}

The above-mentioned economic indicators combined with the events that occurred in the Middle East drove yields and spreads higher, resulting in losses for most bond UCI categories.

With respect to monetary policy, ECB decided to keep its interest rates unchanged, after 10 consecutive hikes since July 2022, while not excluding the possibility for further rates hikes.

In October, fixed income UCI categories registered an overall positive net capital investment, with significant inflows for all the money market UCI categories and for the USD-denominated bonds UCI category.

_{* Variation in % of Net Assets in EUR as compared to the previous month}

The development of net assets of diversified Luxembourg UCIs and funds of funds is illustrated in the table below:

_{* Variation in % of Net Assets in EUR as compared to the previous month}

During the month under review, the following two undertakings for collective investment have been registered on the official list:

UCITS Part I 2010 Law:

• COLLECTION, 15, avenue J-F Kennedy, L-1855 Luxembourg

SIFs:

• DIVERSIFIED PRIVATE MARKETS FCP – SIF, 6A, rue Gabriel Lippmann, L-5365 Munsbach

The following eighteen undertakings for collective investment have been deregistered from the official list during the month under review:

UCITS Part I 2010 Law:

• DB ADVISORS STRATEGY FUND, 2, boulevard Konrad Adenauer, L-1115 Luxembourg
• DUCAL INVESTMENT FUND, 5, allée Scheffer, L-2520 Luxembourg
• ICBC CREDIT SUISSE UCITS ETF SICAV, 49, avenue J-F Kennedy, L-1855 Luxembourg
• PRO SELECT, 4, rue Thomas Edison, L-1445 Strassen
• SPECIAL OPPORTUNITIES FUND SICAV, 4, rue Robert Stumper, L-2557 Luxembourg
• SYQUANT UCITS FUNDS, 4, rue Peternelchen, L-2370 Howald
• UBS (LUX) SICAV 2, 33A, avenue J-F Kennedy, L-1855 Luxembourg
• WELZIA INTERNATIONAL SICAV, 6A, rue Gabriel Lippmann, L-5365 Munsbach

SIFs:

• AFS FUND, 1B, rue Jean Piret, L-2350 Luxembourg
• EVERCARE FUND, 291, route d’Arlon, L-1150 Luxembourg
• GLOBAL VALUE PROPERTY FUND, 17, boulevard F.W. Raiffeisen, L-2411 Luxembourg
• HE INVESTMENTS SICAV-FIS, 5, rue Heienhaff, L-1736 Senningerberg
• KW INVESTMENT LUX S.À R.L. SICAV-SIF, 42-44, avenue de la Gare, L-1610 Luxembourg
• LUX MULTI-FLEX, 5, rue Jean Monnet, L-2180 Luxembourg
• VALIANCE LIFE SCIENCES GROWTH INVESTMENTS SICAV-SIF, 6, rue Dicks, L-1417 Luxembourg

SICARs:

• LFPE S.C.A. SICAR, 41, avenue de la Liberté, L-1931 Luxembourg
• MPEP 2014 S.C.S., SICAR, 26, rue Louvigny, L-1946 Luxembourg
• VERNY INTERNATIONAL S.A. SICAR, 17A, rue des Bains, L-1212 Luxembourg