Over the past five years, assets in Luxembourg-domiciled funds have grown by more than 50%, reflecting sustained international demand for the country’s expertise and unsurpassed international distribution network. The growth has been broad-based, spanning both UCITS and alternative investment funds, with alternatives now accounting for 35% of total assets.
“Growth across Luxembourg’s financial centre has been broad-based, spanning funds, insurance, capital markets and digital finance,” said Tom Théobald, CEO of Luxembourg for Finance. “This reflects the continued diversification of the ecosystem and its ability to support a wide range of financial activities.”
Key Figures:
- Assets under management in both UCITS and AIFs exceeded €8 trillion
- Luxembourg fund assets have grown by over 50% since end-2020
- Alternative funds now represent 35% of total fund assets
- Luxembourg-domiciled ETF-assets stood at €531.8 billion at end-2025, a 19.5% y-o-y growth
- 58+ new entities licensed or authorised during the year
- Life insurance premiums reached a record €31.1 billion
- Non-life insurance premiums totalled €19.77 billion
- More than 2,400 GSSS bonds listed on the Luxembourg Green Exchange
- €1.3 trillion issued via LGX securities
- Luxembourg Stock Exchange surpassed 50,000 listings
UCITS funds recorded growth of 8.5% over the year, with UCITS ETFs reaching over half a trillion euros in assets for the first time. By the end of December, ETF assets stood at €531.8 billion, illustrating the continued expansion of the European ETF market leveraging Luxembourg’s fund ecosystem, which is highly diversified, both in terms of the origin of fund promoters as well as in terms of asset classes.
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. When considering ELTIFs distributed on a genuine cross-border basis, Luxembourg accounts for 77% of the total, underlining its role in structuring long-term investment vehicles for international investors.
The broader financial ecosystem continued to grow throughout the year, with Luxembourg’s financial supervisors authorised more than 58 new entities, reinforcing the centre’s diversification across banking, asset management, payments, insurance, and digital finance.
New entrants included three banks – Cecabank, Fundbank and Rothschild & Co Wealth Management – alongside four Crypto Asset Service Providers (CASPs): Coinbase, Bitstamp, Zodia Custody, and Clearstream. In 2025, Alipay was licensed as an Electronic Money Token issuer, while dtcpay and Ripple were authorised as Electronic Money Institutions. Additional approvals included a payment institution, four specialised PSFs (Professionals of the Financial Sector) and three support PSFs, two authorised AIFMs, 36 registered AIFMs, and a new Chapter 15 ManCo (Management Company) and Chapter 16 ManCo. Three new reinsurers also established operations in Luxembourg, further strengthening the insurance landscape.
Beyond traditional financial activities, Luxembourg’s digital finance ecosystem also continued to evolve. The authorisation of CASPs (Crypto Asset Service Providers), EMIs (Electronic Money Institutions) and EMT (Electronic Money Token) issuers reflects the increasing convergence of digital assets, modern payment infrastructure, and established financial institutions.
“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,” notes Théobald. “This approach combines innovation with regulatory certainty, positioning the jurisdiction as a stable and internationally oriented environment for evolving financial services.”
The insurance sector recorded another strong year. Life insurance premiums reached a record €31.1 billion, representing growth of 16.2% compared to the prior year, which was already a record year. Unit-linked products were the primary driver, increasing by 30.3%, while guaranteed products continued to expand as well. Non-life premiums totalled €19.8 billion.
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.
Moreover, the Luxembourg Stock Exchange surpassed 50,000 listings, reinforcing its position as the world’s leading venue for international debt securities – every third new bond issuance globally is listed in Luxembourg.
“Luxembourg’s continued development reflects the strength of its international model,” continues Théobald. “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.”