Institutional investors account for 25% of mutual funds market, Cerulli finds

Institutional investors are a key client segment for European mutual funds, accounting for almost 25% of the market, according to a Cerulli Associates survey of more than 100 asset managers representing about €3 trillion assets.

“France alone sells more than half of its assets via the direct-to-institution channel and this route is set to gather momentum across the rest of Europe,” said Angelos Gousios, a senior analyst with Cerulli in London, and author of the report European Distribution Dynamics 2013: Navigating a Fragmented Marketplace.

The retirement markets are also proving to be a happy hunting ground for European mutual fund managers, especially in the United Kingdom and the Netherlands, but other markets too. “Defined benefit was unanimously voted by our survey respondents as the top client segment to boost the mutual fund asset base,” said Yoon Ng, associate director and head of European quantitative research.
“With the growing defined contribution pensions markets, this will further boost demand from the institutional channel,” she added.

The 172-page report also found that mutual fund distribution is more costly, more resource intensive, and less inclusive. Guided architecture outpaces open architecture. The emphasis on quality has never been more intense as competition for a place on central buy lists heats up.

Click here to read the full report –

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