Global UCIs;
Credit: CSSF
Taking into account the global situation of undertakings for collective investment (UCIs) at the end of February 2018, Luxembourg has recorded a negative variation amounted to €26.707 billion.
As of 28 February 2018, the aggregate net assets of the undertakings for collective investment, including the UCIs subject to the 2010 Law, specialised investment funds and the SICARs, amounted to €4,187.323 billion compared to €4,214,030 billion on 31 January 2018. This represents a decrease of 0.63% over one month. Considered over the last twelve months, the volume of net assets increased by 8.47%.
The Luxembourg UCI industry thus recorded a negative variation in February amounting to 26.707 billion. This change represents the balance of the net positive issues up to €16.974 billion (0.40%) and the unfavourable evolution of the financial markets up to €43.681 billion (-1.03%).
The number of undertakings for collective investment (UCI) taken into consideration was 4,014 compared to 4,030 the previous month.
With regard to the impact of the financial markets on the main categories of collective investment schemes and the net capital investment in the same UCIs, the following facts should be noted for the month of February. Firstly, the prospect of stronger Federal Reserve (Fed) monetary tightening following the publication of US labour market and inflation-above-expectations metrics dominated financial markets, resulting in falling stock prices and bonds.
Moreover, regarding government bonds denominated in the Euro, the rise in inflation expectations triggered on average a slightly upward trend in yields. The yield spreads between government bonds of high-rated countries and government bonds of low-rated countries have risen, especially in light of political developments in some countries. As corporate bonds, on the other hand, changed little for the month under review, the category of bonds denominated in Euro actually suffered slight price drops.
Nevertheless, during the month of February, fixed income mutual fund categories posted a net negative capital investment overall.
