European fund universe shrinks

coins_in_squeeze_410The universe of funds available for sale in Europe declined by 390 this year, according to Lipper, as asset managers are preparing for Ucits IV and rationalising their product ranges. Lipper’s latest Fund Market Insight Report shows the number of 2,383 new launches was offset by 1,513 fund closures and 1,260 fund mergers. Ongoing rationalisation of fund families and the Ucits IV directive are likely to cause the European mutual fund universe to shrink further. Lipper registered 35,017 funds for sale in Europe at the end of the third quarter: 37% were equity funds, 23% mixed assets and 18% bond funds. Of those 2,383 funds that were launched during the same time, 791 were equity funds, 481 bond funds, 524 mixed asset funds. On the other hand, of those 1,513 that were liquidated, 434 were equity funds, 270 bond funds and 232 mixed asset funds. Lipper predicts the coming months to be “challenging” for the European mutual fund market. “The debt crisis in Europe creates uncertainties on the market and fund companies are taking a cautious approach in their development strategies,” the report says. “Indeed, revenue in the industry is strongly related to assets under management which is itself a consequence of fund flows and performance.” Lipper says because markets are feeling the impact of the crisis, revenue for the industry is likely to decline further. ©2011 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.