Luxembourg investment funds continue to grow | Luxembourg word
The policy of US President Donald Trump keeps shaking exchanges. So far, this has not been able to harm the Luxembourg investment fund. On the contrary, the fund’s assets continue to grow.
At the end of December 2024, the assets managed by Luxembourg investment fund was 5,820 billion euros, 9.28 percent more than the beginning of the year. And by the end of February 2025, it continued to 5,957.26 billion euros. This is announced by the investment fund association Alfi on Tuesday. If you add up the assets of the alternative investment funds, which manage money, especially for institutional investors, Luxembourg funds managed a total of 7.3 trillion euros at the end of 2024.
The industry wants that Use European savings and investment potential better. « The European capital markets are in a decisive phase, » said the Fund Association Alfi.
Ten trillion euros
« The Europeans save a considerable part of their income, but often fail to open up the potential of these savings through investments. In contrast to other regions in which the assets of private households are actively invested, financial assets in Europe are largely slumbering in cash and on savings accounts. »
According to ALFI, ten trillion euros in private households in Europe (41 percent) are currently kept in cash and savings accounts, compared to 13 trillion euros (16 percent) in the United States. « This significant difference illustrates the need to mobilize these funds for productive investments, » said the fund association.
By activating the 33.5 trillion euros of unused financial assets of private households in Europe, Europe could accelerate growth. The key to this change lies in the development of the enormous potential of private savings. This could be done in particular by promoting the second pillar of the company pension scheme.
« »In view of the great demographic challenges in front of Europe, the modernization of pension systems – in particular the systems of the second pillar – is of crucial importance, ”the fund association said.
