* Luxembourg Fund Industry Tops $1.5 TrillionTotal net assets in US dollar terms for all collective investment funds domiciled in Luxembourg recorded growth of 25% over the year to 31 December 2004, according to Fitzrovia’s eleventh annual Luxembourg Fund Encyclopaedia.
Fitzrovia's data shows that the total number of funds and subfunds rose from 7,444 to 7,777 during the twelve month period as the funds industry topped $1.5 trillion.
The number of equity funds domiciled in Luxembourg fell, albeit at a slower rate, from 2,915 to 2,909 funds, although assets invested in these funds continued to rise, reaching US$501.8 billion, an increase of 35%.
In the other main asset classes (bond funds and cash funds), there was also little movement in the number of funds, but healthy growth in total net assets (rising by 27% and 8% respectively).
However, there appeared to be rapid growth in alternative investment fund assets, primarily hedge funds, which more than doubled to reach US$18.7 billion.
Among service providers, J P Morgan is now the largest administrator by total net assets (US$164.3 billion), ahead of UBS (US$139.6 billion). Similarly for custody services, J P Morgan retains first place with US$200.8 billion, with UBS in second place (US$139.6 billion).
PricewaterhouseCoopers maintains its dominance in auditing 3,226 funds. Among legal advisers, Elvinger Hoss & Prussen (advising 1,848 funds) remains ahead, followed by Arendt & Medernach (1,562 funds) - both firms have maintained their respective market shares compared with last year.
US fund promoters have the largest proportion of assets under management (US$370.5 billion), ahead of Swiss promoters (US$308.9 billion) and German promoters (US$252.8 billion).