JP Morgan and State Street have reinforced their dominance in Luxembourg’s fund industry, according to the 30th edition of Monterey Insights Luxembourg Fund Report.
JP Morgan ranks as the top investment manager in the Grand Duchy, while State Street remains the leading player in fund administration, custody, and transfer agent services. As Luxembourg’s fund market rebounded in 2023, these two financial giants played pivotal roles in its growth in both regulated and unregulated assets. The report, however, also highlights the intense competition among various service providers as the market continues to evolve.
JP Morgan leads the rankings as the largest promoter and initiator of serviced funds, managing assets worth 453 billion euro. Its Luxembourg subsidiary, JP Morgan Asset Management (Europe), remains the top management company, handling 430.9 billion euro in assets. This cements JP Morgan’s position as a major force in cross-border Ucits and alternative investment solutions in Luxembourg.
Amundi overtakes UBS
German-owned DWS Investment, French-owned Amundi Luxembourg and Swiss-owned UBS Fund Management (Luxembourg) complete the top four on the list of Luxembourg management companies. Monterey Insights noted that Amundi has overtaken UBS as the third-biggest ManCo/AIFM in Luxembourg.
Meanwhile, State Street continues to dominate the fund administration sector, managing 1.05 trillion euro in assets, far ahead of its competitors. In custody services, State Street also holds the largest market share, with assets under custody reaching 1.14 trillion euro. Additionally, in transfer agent services, State Street’s partnership with IFDS oversees 1.06 trillion euro in assets.
Caceis moves to 3rd, BNY Mellon now 4th
While JP Morgan and State Street lead their respective categories, competition within Luxembourg’s fund industry remains intense. In fund administration, JP Morgan Bank ranks second, managing 832.4 billion euro in assets, followed by Caceis, which climbed to third after its acquisition of RBC Investor Services Bank. Caceis now manages 487.8 billion euro in assets, with BNY Mellon slipping to fourth place, managing 377.2 billion euro.
Caceis has also made gains in the custody services sector, securing third place behind JP Morgan Bank, which manages 1.01 trillion euro in assets. BNP Paribas ranks fourth, managing 527.2 billion euro in assets under custody.
In the transfer agents sector, Caceis climbed to second place, managing 979.2 billion euro in assets, pushing JP Morgan Bank to third with 631.3 billion euro. BNP Paribas rounds out the top four with 399.2 billion euro in assets under transfer agency.
Per end-2023, private equity and venture capital funds assets amounted to 1.17 trillion euro, making it the fastest-growing category in terms of the number of products.
PwC top auditor in terms of assets audited
Auditing respectively 3,113 billion euro and 1,484 billion worth of fund assets, PwC and EY retained the top two spots among audit firms. Deloitte moved up to third and audited 1,112 billion last year. With 990.9 billion, KPMG fell short of the one trillion euro mark last year.
Arendt & Medernach, Elvinger Hoss Prussen, Allen & Overy and Loyens & Loeff were top law firms in terms of number of funds represented. When ranked by net fund assets, Linklaters appeared as third, trailing Arendt and Elvinger and just ahead of Allen & Overy.