Fitzrovia Says Assets In Luxembourg Funds' Up 36% In 2003

Fitzrovia International's says all collective investment funds in Luxembourg enjoyed growth of 36% in total net assets last year, jumping to $1,199.7 billion from $ 883.2 billion in the year ended Dec. 31, 2003. While part of this growth can

By None

Fitzrovia International’s says all collective investment funds in Luxembourg enjoyed growth of 36% in total net assets last year, jumping to $1,199.7 billion from $ 883.2 billion in the year ended Dec. 31, 2003.

While part of this growth can be explained by the weaker dollar/euro exchange rate, even when the change in assets is calculated in euros, impressive growth of 13% is shown, rising from 841.6 billion euros to 951.1 billion euros.

Fitzrovia’s tenth annual Luxembourg Fund Encyclopedia shows that the number of funds and sub funds fell from 7,693 to 7,444, a decrease of 3%. For equity funds alone, the number of funds decreased from 3,313 to 2,915 (a 12% decline), while assets increased from US$ 242.8 billion to US$ 370.7 billion (a 53% rise).

“Consolidation of this kind in the industry is welcome as it means a rise in the average fund size, increasing economies of scale, and thus benefiting investors, promoters and service providers,” said Paul Moulton, Chief Executive of Fitzrovia.

US fund promoters now have the largest proportion of assets under management at $ 291.8 billion, overtaking Swiss promoters, at $ 271.5 billion, for the first time. German fund companies are in third place with assets of $ 206.1 billion.

Among service providers, UBS is the largest administrator by assets at $ 120.9 billion, with JPMorgan second at $ 117.8 billion. For custody services, these positions are reversed, and JPMorgan is first with $ 142.0 billion. European Fund Administration continues to have the largest market share by number of funds under administration (966 funds).

PricewaterhouseCoopers maintains its dominance in auditing 3,255 funds – more than twice as many as their nearest rival. Similarly, Elvinger Hoss & Prussen are still the leading legal firm, advising 1,762 funds.

Of new products launched over the year, the largest type were 107 Global funds of funds, while newly launched European bond funds attracted the greatest assets, at $ 12.6 billion.

«