LUXEMBOURG – Swiss bank UBS is the largest manager of Luxembourg-based funds with total net assets of 93.2 billion dollars, according to new research.

UBS is also the largest administrator by assets, with 96.3 billion dollars, followed by J P Morgan with 85.8 billion dollars, according to Fitzrovia International.

The total net assets in Luxembourg-based funds rose by seven percent to 883.2 billion dollars as at the end of 2002. It also found that the number of funds rose by 279, or four percent, to 7,693. The findings were published in Fitzrovia’s ninth annual “Luxembourg Fund Encyclopaedia”.

“In total, there are 564 fund promoters from 36 countries with funds domiciled in Luxembourg,” it said. US fund promoters had 200 billion dollars under management, compared to Swiss-based firms with 219.7 billion dollars.

J P Morgan was top for custody services, with 107.0 billion dollars.

Equity remains the largest asset class, with 242.8 billion dollars in 3,313 funds, though bond funds are close with 242.6 billion dollars. Cash funds have 219.6 billion dollars.

James McAleenan, managing director of J P Morgan Bank Luxembourg, said: “Next year is going to be even more difficult with changes arising from UCITS III and the European savings directive as well as the expected continuing poor market conditions all providing significant challenges for our clients and for custodians and administrators alike.”

Marc Saluzzi, head of investment management leader at PricewaterhouseCoopers Luxembourg, added that Luxembourg funds have attracted more than 60 billion dollars of new assets – against net sales of 76 billion dollars in the US.

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