Luxembourg, the largest international funds centre, saw the assets of fund domiciled there increase by $173bn in 1999 to take its total $747bn, ranking it second only to the US as a funds’ location.
According to research by London-based Fitzrovia International, the number of funds and subfunds based there rose by 13% to 5,762 last year.
Equity funds are now the largest class for the first time, as assets increased by 92% to reach $277.5bn at year end, while bond funds at £193.2bn and cash funds at $131.1bn were at similar levels to the previous year. This shows the rising demand for equity funds from Continental investors, says Fitzrovia.