The CSSF (Commission de Surveillance du Secteur Financier), the public institution which supervises the professionals and products of the Luxembourg financial sector, just published its 2021 report on the local fund industry that reiterates Luxembourg’s worldwide attractiveness, with a rise in net assets in 2021 by €886 billion.

Private equity, remarkably through the UCITS regulatory framework, is the asset class that led this fast growth (comprising 30% of it), followed by equities and funds of funds.

Although the global volume of net assets has expanded, the notable trend pointed to in the report is the restructuration of the number of funds, which even decreased slightly (14,590 funds or sub-funds in 2020 to 14,445 in 2021). It shows yet an increase of the average size of funds going from €341 million in 2020 to €406 million in 2021.

The CSSF is also forecasting a continuing growth of the sector in 2022, when a threshold as high as €7 trillion in net assets managed in Luxembourg could be reached.