Equity funds remain the largest asset class in Luxembourg-registered funds despite the downturn in global equity markets and the resulting outflows from equity funds, according to Fitzrovia International.

However, the margin between equity, bond and cash funds has narrowed, according to the fund research firm's ninth annual Luxembourg Fund Encyclopaedia, with equity funds representing $242.8bn (€221.8bn) in 3,313 funds, bond funds $242.6bn and cash $219.6bn at the end of December 2002.