Consolidation continues between European mutual funds, says Lipper

At the end of the second quarter, only 417 funds were created in Europe, the lowest number in the last five years, according to the latest data released today by Lipper.

This reflected a 60% decrease compared with a peak in the second quarter of 2008 and a decrease of 50% compared to the same period in 2011, when 838 funds were launched.

During the quarter, 875 funds were withdrawn from European markets, with 535 liquidation and 340 mergers, which indicate a still-ongoing trend of fund range consolidation.

But the consolidation process could be slowing, Lipper added.

“The number of fund mergers went down approximately 23% from 441 in Q2 2011 to 340 in Q2 2012. Q2 2012 saw the lowest number of mergers in the last five years,” the company said.

Luxembourg dominated the fund market in Europe, hosting 8,443 funds, followed by France, where 4,638 funds were domiciled.

Equity funds weighted for 37% of the funds available for sale, followed by mixed-asset funds at 24%. Bond funds stood at 18%.

At the end of June 2012, 31,787 mutual funds were registered for sale in Europe.

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