Europe’s funds industry goes towards consolidation, Lipper

At the end of September, 32,138 mutual funds were registered for sale in Europe, of which 8,562 funds domiciled in Luxembourg, according to the lastest market outlook published by Lipper.

During the third quarter, the industry also showed a consolidation trend for the funds range.

A total of 712 funds (471 liquidations and 241 mergers) were withdrawn from the market, while only 404 new products were launched.

Equity funds dominated the scene with 37% of the funds available for sale, followed by mixed-asset funds at 24%. Bond funds stood at 18%, while money market funds represented 5% of the market.

The remaining 16% were “other” types of funds, including real estate funds.

“The fund industry is still consolidating fund ranges, but the absolute numbers of mergers and liquidations has decreased since the previous measured quarter, parallel with the decreasing numbers of newly launched products,” Lipper said in its outlook.

The research firm added that the eurozone crisis is still challenging for the markets, but currently it is not the absolutely dominating topic.

“With the decision to keep Greece in the eurozone the uncertainty in the financial markets has declined. This in combination with the announcement from the European Central Bank of its buying governmental securities from eurozone member states without a defined limit if necessary postponed the challenging task of reducing public debt in the future,” Lipper said.

Meanwhile, the discussion of how new directives, regulations, and laws will be implemented in the markets has increased significantly.

UCITS V requirements have to be considered for 2013/2014, parallel with the EU Commission’s working on UCITS VI. Beside the UCITS regulations, the AIFM guidelines are also a hot topic in the industry.

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