Assets in Luxembourg-domiciled funds surpass €8trn for the first time

Assets under management in Luxembourg-domiciled funds surpassed €8trn for the first time at the end of 2025 on the back of sustained international demand, according to Luxembourg for Finance.

AUM reached €8.2trn with assets growing more than 50% over the past five years.

UCITS funds saw growth of 8.5% over the year, with UCITS ETFs surpassing €500bn in assets for the first time, reaching €531.8bn at the end of December.

Luxembourg also remains the leading domicile for European Long-Term Investment Funds (ELTIFs). At the end of 2025, 150 of the 272 ELTIFs established in the EU were domiciled in Luxembourg.

Last year saw Luxembourg’s financial supervisors authorise 58 new entities. New entrants included three banks, four crypto asset service providers, a payment institution, four specialised professionals of the financial sector (PFSs) and three support PSFs, two authorised AIFMs, 36 registered AIFMs, and a new Chapter 15 ManCo and Chapter 16 ManCo. Three new reinsurers also established operations in Luxembourg.

Tom Théobald, CEO of Luxembourg for Finance, said: “Growth across Luxembourg’s financial centre has been broad-based, spanning funds, insurance, capital markets and digital finance.

“This reflects the continued diversification of the ecosystem and its ability to support a wide range of financial activities.”

He added: “Building on longstanding expertise in fund servicing, custody, capital markets, and international cross-border distribution, Luxembourg is continuing to integrate digital finance into its broader institutional architecture. This approach combines innovation with regulatory certainty, positioning the jurisdiction as a stable and internationally oriented environment for evolving financial services.”

Luxembourg also strengthened its global leadership in sustainable finance and international debt markets. By year-end, more than 2,400 Green, Social, Sustainable and Sustainability-Linked bonds were listed on the Luxembourg Green Exchange (LGX), 43% of the total global market share, with over €1.3 trillion issued via LGX securities.

The Luxembourg Stock Exchange remained a popular venue for international debt securities with listings surpassing 50,000; every third new bond issuance globally is listed in Luxembourg.

Luxenbourg’s reputation for sustainable finance was also boosted with more than 2,400 Green, Social, Sustainable and Sustainability-Linked bonds listed on the Luxembourg Green Exchange (LGX), 43% of the total global market share, and over €1.3trn issued via LGX securities.

“Luxembourg’s continued development reflects the strength of its international model,” Théobald added. “The country’s regulatory expertise and stability, cross-border experience and openness to innovation, as well as the government’s strong competitiveness agenda, ensures that it stands to gain from the renewed focus on Europe by global asset allocators.”