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Luxembourg sees rise in fund assets

FortressLuxembourg-domiciled fund assets rose by 24% to €1,924.5bn over the year to the end of 2009, up from €1,548.1bn in 2008, according to Lipper FMI.

The number of funds stayed essentially the same at 12,115. Lipper says this reflects the exceptional circumstances encountered in 2009 when the rationalisation of fund ranges accelerated to exceed fund launches for the first time in many years.

JP Morgan maintained its position as the largest fund administrator by total net assets – US$388.2bn (€303.7bn) – with RBC Dexia in second and State Street moving up into third place.

For professional firms, PricewaterhouseCoopers remains dominant in auditing 5,181 funds.  Among the legal advisers, Arendt & Medernach was ahead of Elvinger Hoss & Prussen by number of funds, although the latter has maintained its leading market share by total net assets.

The revival in stock markets and resulting investor interest has meant that equity fund assets rose by 54% to reach $801bn. 

Bond funds also enjoyed healthy asset growth of 34% with total net assets reaching $556bn.  Among smaller sectors, convertible bond assets more than doubled to
reach $33.8bn.

Interest in fixed income was also reflected in the most popular funds launched over the year with new European bond funds and global bond funds attracting the greatest volume of assets, $22.3bn and $21.4bn respectively.

Ed Moisson, director of fiduciary operations at Lipper FMI, said: “With cross-border fund groups enjoying the greatest sales flows in 2009, the Luxembourg industry as a whole has benefited.  While the ripple effects from the financial crisis are still being felt, there is a range of issues that the cross-border industry, and Luxembourg at its heart, will need to address as it rebuilds for the future.”

©2010 funds europe