FUNDMARKET INSIGHT REPORT

Transcription

1 FUNDMARKET INSIGHT REPORT MAY 214 LAUNCHES, LIQUIDATIONS, AND MERGERS IN THE EUROPEAN MUTUAL FUND INDUSTRY, Q1 214 CHRISTOPH KARG Content Specialist for Germany & Austria Executive Summary As of the end of March 214 there were 31,777 mutual funds registered for sale in Europe. Luxembourg, hosting 8,72 funds, continued to dominate the fund market in Europe, followed by France, where 4,765 funds were domiciled. For Q1 214, 541 funds were created in Europe. During the same period 437 funds were liquidated and 263 were merged. The results of the first quarter show that the industry was still consolidating its fund ranges. A total of 7 funds (437 liquidations and 263 mergers) were withdrawn from the market, while only 541 new products were launched. View on the Mutual Fund Market in Europe The chart below breaks down the European fund market by asset class as of the end of Q Equity funds dominated the scene with 37% of the funds available for sale, followed by mixed-asset funds at 25%. Bond funds stood at 22%, while money market funds represented 4% of the market. The remaining 12% of other funds were real estate funds, commodity funds, guaranteed funds, and funds of hedge funds. Net changes in the number of funds in Europe were still negative, but there was one asset type countering this trend: bond funds. DETLEF GLOW Head of Lipper EMEA Research Figure 1 Distribution of Mutual Funds Registered for Sale in Europe by Asset Type as of the End of March % 4% 37% Equity 22% Mixed Asset Bond 25% Other Money Market

2 LIPPER FUND MARKET INSIGHT REPORT MAY 214 Quarterly Comparison During Q1 214, 541 funds were launched in Europe. The quantity of newly launched funds for first quarter 214 was nearly 25% higher compared with the number of launches for Q1 213 (435). Compared with the peak in 21, the number of newly launched products for Q1 214 showed a decrease of around 33%. The number of liquidations went up approximately 1%, comparing Q1 214 with Q1 213 to 437 from 396. During the same period the number of fund mergers went up significantly from 24 in Q1 213 to 263 in Q1 214 an increase of 29%. Figure 2 Overview of New Fund Launches, Mergers, and Closures of Investment Funds Q1 21 Q1 211 Q1 212 Q Q Launched Liquidated Merged The number of liquidations seems to be stable, comparing the last five first quarters. We also see a significant increase in mergers a clear sign of consolidation. This means the consolidation phase is not yet over, but we also see in Q1 214 the highest number of launches since Q1 211, comparing first quarter numbers. These numbers indicate the European fund industry is not focused only on consolidation. Since investors are demanding new products that fulfill their needs in terms of their risk-and-return profiles, the industry also tries to generate growth with the launch of new products.

3 LIPPER FUND MARKET INSIGHT REPORT MAY 214 Launches, Mergers, and Liquidations Over the Past Five Years With 541 newly launched products for Q1 214, we saw the highest number of new products for a single quarter since Q Similarly, the number of liquidations and mergers went down, although the European fund universe still showed a negative trend in total. Figure 3 Launches, Mergers, and Closures of Investment Funds Merged Liquidated Launched The net size of the European fund universe decreased since Q Q1 214 showed a net decrease of 159 products. Figure 4 Net Change in Number of Funds Registered for Sale in Europe

4 LIPPER FUND MARKET INSIGHT REPORT MAY 214 Changes in European Fund Universe Asset Classes, Q1 214 Q1 214 witnessed the launch of 541 funds: 174 equity funds, 162 bond funds, 168 mixedasset funds, 36 other funds, and 1 money market fund. During the same period 437 funds were liquidated: 125 equity funds, 73 bond funds, 12 mixed-asset funds, 14 other funds, and 15 money market funds. For Q1 214, 263 funds were merged: 82 equity funds, 67 bond funds, 64 mixed-asset funds, 12 other funds, and 38 money market funds. Figure 5 Overview of New Fund Launches, Mergers, and Closures, December 31, March 31, Launched Liquidated Merged Bond Funds Equity Funds Mixed Funds Money Market Funds Other Funds The net changes for Q1 214 showed a split picture. Since the net change for money market funds showed 53 closed against 1 launched and other funds showed 116 closed against 36 launched, we saw a significantly negative trend for those sectors in total. On the other hand, we saw the equity and mixed-asset sectors also had negative net numbers. But with 27 closures against 174 launches for equity funds and 184 closures against 168 launches for mixed-asset funds, the picture there was significantly better. Only bond funds showed a positive trend in total, with 14 closures against 162 launches.

5 LIPPER FUND MARKET INSIGHT REPORT MAY 214 Outlook Net changes in the number of available mutual funds still showed a decrease in total numbers, but the trend was slowing. The numbers of mutual funds being liquidated and merged were going down, while the number of newly launched products was going up. In consequence, the net changes were tending toward the zero line, and we might see them breaking through in second quarter 214. The markets are still driven by the low-interest-rate politics of central banks, so a lot of money is seeking investment opportunities. Most leading stock indices are showing a positive performance so far in 214. Some of them have even reached new all-time highs. Opposite to these positive market trends, there is also a lot of uncertainty in the markets. Even though the Euro-crisis is not dominating market discussions anymore, it is recognized that the crisis is not yet over. Positive signals from Ireland, Spain, and Portugal conflict with the slow-going reformation process in France, Italy, and Greece. The impact from the conflict between Russia and Ukraine as well as the related actions from Europe and the USA are not foreseeable. Since the beginning of the year the Russian exchange index RTS has lost about 15%. This drawdown has been accompanied by a massive exodus of foreign capital. So, politics are still a key driver for market developments, and we expect this will not change in the near future. Lipper U.S. Client Services Lipper Europe Client Services (UK) (Europe) Lipper Asia Client Services lipperweb.com 214 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks and trademarks of Thomson Reuters and its affiliated companies.