Global situation of undertakings for collective investment at the end of April 2020
Press release 20/13
I. Overall situation
As at 30 April 2020, total net assets of undertakings for collective investment, including UCIs subject to the 2010 Law, specialised investment funds and SICARs, amounted to EUR 4,403.683 billion compared to EUR 4,149.916 billion as at 30 March 2020, i.e. a 6.11% increase over one month. Over the last twelve months, the volume of net assets decreased by 0.03%.
Consequently, the Luxembourg UCI industry registered a positive variation of EUR 253.767 billion in April. This increase represents the balance of positive net issues of EUR 42.882 billion (+1.03%) and a positive development in financial markets amounting to EUR 210.885 billion (+5.08%).
The development of undertakings for collective investment is as follows:
The number of undertakings for collective investment (UCIs) taken into consideration totalled 3,693 as against 3,700 in the previous month. A total of 2,422 entities adopted an umbrella structure, which represented 13,449 sub-funds. When adding the 1,271 entities with a traditional structure to that figure, a total of 14,720 fund units were active in the financial centre.
As regards, on the one hand, the impact of financial markets on the main categories of undertakings for collective investment and, on the other hand, the net capital investment within these UCIs, the following can be said about April.
Following the significant financial market downturn in March due to the coronavirus pandemic and its negative impacts on the global economy, the exceptional support measures taken by most governments and central banks worldwide to stabilise the economy and financial markets, together with the lifting of the lockdown measures announced in several countries, resulted in a significant upward of stock prices in April, raising all UCI categories.
As far as developed countries are concerned, European and US equity UCIs recorded a significant positive performance due in part to the fiscal and monetary support measures, notwithstanding economic activities and leading economic indicators on the downside. The potentially easing of the lockdown measures in Europe in view of the drop in new infections has also supported the European stock exchanges. While the Japanese share prices increased less significantly, partly on account of the spread of the virus in Japan and the state of public health emergency declared by the Japanese government, the appreciation of the JPY against the EUR sustained the Japanese equity UCIs which recorded a significant rise during the month under review.
As for emerging countries, Asian equity UCIs ended the month up, mainly driven by the coronavirus spread slowing in many Asian countries. Overall, Eastern European and Latin American equity UCI categories followed that strong upward trend, despite the drop in oil prices and divergent pandemic developments in various countries of these regions.
In April, equity UCI categories registered an overall positive net capital investment.
On both sides of the Atlantic, the asset buy-back programmes of the ECB and the US Federal Reserve permitted supporting bond market liquidity and pulled the prices of high-rated government bonds up. These buy-back programmes, together with the renewed risk appetite of investors, also fuelled the rise in corporate bond prices, even though the credit risk increased against the background of the health crisis. Bonds from peripheral countries of the euro area have not been able to take advantage of this upward trend, in particular owing to the lack of progress in the discussions on the euro area sovereign-debt pooling. In this context, categories of EUR and USD-denominated bond UCIs appreciated.
While idiosyncratic risks in some countries remain, emerging countries bond UCIs registered an overall substantial growth, which has been supported by the prospect of a lockdown lifting in a number of emerging countries, key interest rates being decreased by many central banks of emerging countries, the reduction of risk premiums in view of the renewed risk appetite of investors as well as the stabilisation of most currencies of emerging countries.
In April, fixed-income UCIs registered an overall positive net capital investment as money market UCIs recorded the highest net subscriptions.
In this context, diversified UCIs and funds of funds showed a rebound in prices. The development of net assets of these UCIs is illustrated in the table below:
II. Breakdown of the number and net assets of UCIs
During the month under review, the following six undertakings for collective investment have been registered on the official list:
UCITS Part I 2010 Law:
- ALLIANZ EURO CREDIT SRI PLUS, Bockenheimer Landstraße 42-44, 60323 Frankfurt am Main1
- KENSINGTON INVESTMENT FUNDS, 106, route d’Arlon, L-8210 Mamer
- THREESIXTY INVESTMENTS SICAV, 49, avenue J-F Kennedy, L-1855 Luxembourg
UCIs Part II 2010 Law:
- KAIROS ALTERNATIVE INVESTMENT S.A. SICAV, 60, avenue J-F Kennedy, L-1855 Luxembourg
- WELL BE FUND SCS SICAV-SIF, 15A, avenue J-F Kennedy, L-1855 Luxembourg
- BTOV DIGITAL TECHNOLOGIES II SCS, SICAR, 1c, rue Gabriel Lippmann, L-5365 Munsbach
The following 13 undertakings for collective investment have been deregistered from the official list during the month under review:
UCITS Part I 2010 Law:
- MIX-FONDS HASPA:, 6, rue Lou Hemmer, L-1748 Luxembourg-Findel
- THE GUARDIAN SICAV, 49, avenue J-F Kennedy, L-1855 Luxembourg
- UNIOPTIMA, 308, route d’Esch, L-1471 Luxembourg
- VALOR, 15, rue de Flaxweiler, L-6776 Grevenmacher
- YCAP CREDIT FUNDAMENTAL, 9A, boulevard du Prince Henri, L-1724 Luxembourg
UCIs Part II 2010 Law:
- ARTICO DYNAMIC SICAV, 2c, rue Albert Borschette, L-1246 Luxembourg
- DEUTSCHE EUROPEAN REAL ESTATE SECURITIES MASTER FUND, 2, boulevard Konrad Adenauer, L-1115 Luxembourg
- UNIGARANT: CHANCENVIELFALT (2020), 308, route d’Esch, L-1471 Luxembourg
- ASHMORE EMERGING MARKETS CORPORATE PRIVATE DEBT FUND, SICAV-SIF, 6, rue Lou Hemmer, L-1748 Findel
- CENTRICUS GLOBAL SICAV-SIF SCA, 2, rue Jean Monnet, L-2180 Luxembourg
- MENA JOINT INVESTMENT FUND S.C.A., SICAV-SIF, 6, rue Gabriel Lippmann, L-5365 Munsbach
- SILVERHORN SICAV-SIF, 1C, rue Gabriel Lippmann, L-5365 Munsbach
- SSIAM SIF, 4, rue Jean Monnet, L-2180 Luxembourg
1 Undertaking for collective investment for which the designated management company was authorised by the competent authorities of another Member State in accordance with Directive 2009/65/EC.