Luxembourg Intergenerational Sovereign Fund (FSIL)

At a glance. FSIL is Luxembourg's intergenerational savings fund, a public body under the finance minister that receives at least EUR 50M a year, indexed, from the budget. It held EUR 784.3M (about USD 921.6M) at end 2025, mostly in SRI equity and bond index funds, and returned 2.61 percent that year. A 2025 policy adds private equity, real estate and a small bitcoin allocation. S2 S4 S5

Key points

• Since its first investments the fund has returned 38.30 percent in total, or 3.43 percent a year. S4
• July 2025 policy: 50 percent equities, 32 percent bonds, 10 percent private equity, 4 percent real estate, 1 percent crypto and 3 percent cash. S4
• Bought three US spot bitcoin ETFs in late 2025, worth about EUR 5.87M at year end. S4
• The European Investment Fund manages its private equity vehicle; priorities include technology and defence. S4 S2
• The government may take up to half of the prior year's income from 2034, or once assets pass EUR 1B. S2
• US dollar exposure hedged at about 95 percent each month. S4

Interesting facts

• Its target return is the higher of the ECB inflation goal and the 10-year Luxembourg bond yield. S2
• Its real estate pocket aims to support the Luxembourg housing market. S2
• The finance minister has named cybersecurity, digital resilience and space as possible growth themes. S6

Mandate and goals

Build savings whose income may, under conditions and limits, support the well-being of future generations. S2

• Earn at least the higher of ECB target inflation or the 10-year Luxembourg bond yield. S2
• Invest responsibly with ESG criteria across asset classes since 2020. S2
• Phase in alternatives, favouring co-investment with public institutions. S2
• Return target: Higher of the ECB inflation target (close to but below 2 percent) and the 10-year Luxembourg government bond yield S2

How it invests

Asset mix: Equities (target) 50%, Bonds (target) 32%, Private equity (target) 10%, Real estate (target) 4%, Cash (target) 3%, Crypto-assets (target) 1% S4

Published allocation ranges: Equities 40 to 60%, Bonds 22 to 42%, Private equity 0 to 20% S4

Largest holdings: Amundi MSCI World SRI Climate Net Zero Ambition PAB UCITS ETF EUR 82.9M, UBS ETF MSCI World Socially Responsible UCITS ETF EUR 80.3M, iShares MSCI World SRI UCITS ETF EUR 73.8M, iShares Euro Aggregate Bond UCITS ETF EUR 62.6M, Amundi Index MSCI Europe SRI UCITS ETF EUR 62.4M, iShares MSCI Europe SRI UCITS ETF EUR 56.7M S4

Published criteria

• ESG integration across equities, bonds and, where possible, alternatives. S2
• Allocation ranges: equities 40 to 60 percent, bonds 22 to 42 percent, private equity up to 20 percent. S4

Past investments

Case studies

The 2025 policy reset S4 S2

• What: New allocation moved bonds from 57 to 32 percent and equities from 40 to 50 percent, adding private equity, real estate and crypto.
• When: July 2025
• Size: Whole fund, EUR 784M
• Why: Raise long-term returns as the fund nears the 2034 income date.
• Outcome: Transition under way; bonds still above range at end 2025.

A sovereign fund buys bitcoin S4

• What: Bought three US-listed spot bitcoin ETFs under a 1 percent crypto target.
• When: Q4 2025
• Size: About EUR 5.87M
• Why: Small diversifying allocation within a 0 to 3 percent range.
• Outcome: Held at year end with US dollar hedging excluded for crypto ETFs.

Investment process

A five-member Steering Committee manages the assets and sets policy, advised by a four-member Investment Committee; the Government Council approves policy. S2 S4

1. Investment Committee advises. S2
2. Steering Committee decides within policy. S2
3. Government Council approves policy changes. S2

How to approach: Contact details on the Ministry of Finance page. S2

Size and returns

• Headline size: EUR 784.3M (end 2025) (Total assets (balance sheet)) S4 S5
• In US dollars: about USD 0.92B. Converted at EUR 0.85106 per USD, ECB rate for 31 December 2025
• State endowments to date: EUR 643.3M (Committed or authorised capital) S4
• Return, 2025: 2.61 percent (time-weighted; 2.77 percent money-weighted) S4
• Return, Since first investment in 2016: 3.43 percent a year S4
• Size over time (EUR million): 2024 701.9, 2025 784.3 S4

Leadership

Governance and transparency

• Legal basis: Law of 19 December 2014 on the "paquet d'avenir", last amended 20 December 2024 S4
• Oversight: Finance minister; Cour des comptes review S4
• Auditor: EY Luxembourg S4
• Annual report to the Chamber of Deputies by 31 March. S4
• Accounts filed in the Luxembourg business register. S4

Transparency score: 9.5 of 10 (band 5 of 5). Our own 10-item rubric; see the methodology page.

• Published: total assets, annual return, long-term returns, asset allocation, holdings or deal list, audited financial statements, governance and mandate documents, named leadership, regular reporting schedule. S2 S4 S7
• Partly published: geographic or sector split. S4

History

Reports

• FSIL annual accounts and activity report 2025: https://mfin.gouvernement.lu/dam-assets/le-minist%C3%A8re/fondssouveraininteregenerationnel/comptes-et-rapports-d%E2%80%99activit%C3%A9s-annuels/signed-report-fonds-souverain-intergnrationnel-du-luxembourg-31122025.pdf S4
• FSIL half-year accounts 2025: https://mfin.gouvernement.lu/dam-assets/le-minist%C3%A8re/fondssouveraininteregenerationnel/comptes-et-rapports-d%E2%80%99activit%C3%A9s-semestriels/comptes-semestriels-2025.pdf S7

Common questions

How large is FSIL?

EUR 784.3M at end 2025, about USD 921.6M. S4

Who runs it?

A Steering Committee chaired by Bob Kieffer, under the finance minister. S4

When can the government use its income?

From 2034, or once assets pass EUR 1B, up to half of the prior year's income. S2

Does it hold bitcoin?

Yes, through three spot bitcoin ETFs worth about EUR 5.87M at end 2025. S4

What has it returned?

3.43 percent a year since its first investments. S4

Related profiles

• Government Pension Fund Global (Norway) Norway · NOK 22,683B
• KENFO, Nuclear Waste Disposal Fund (Germany) Germany · EUR 25,577M
• Future Ireland Fund Ireland · EUR 12.7B
• Turkiye Wealth Fund (TWF) Turkiye · TRY 18,997B
• National Wealth Fund of the Russian Federation Russia · RUB 13,194.9B
• Bpifrance France · EUR 106.3B

All sovereign wealth funds in Europe · All savings and future generations funds · All funds in Luxembourg

Sources

1. S1Luxembourg State Treasury, FSIL entry
2. S2Ministry of Finance Luxembourg, FSIL page
3. S3IFSWF, our members
4. S4FSIL, audited annual accounts and activity report 2025
5. S5Frankfurter, ECB reference rate USD/EUR, 31 December 2025
6. S6Paperjam, sovereign fund shifts towards strategic assets
7. S7FSIL, half-year accounts 2025