Amid increasing suggestion that the number of fund launches in Europe and the UK in particular is becoming unsustainable, Lipper’s data shows that 2010 saw 2,872 new funds launched, the lowest number in the five-year period since 2006.
The most prolific years were 2007 (4,327 new funds) and 2008 (3,702), and the yearly-average number of launches over the five-year period was 3,488.
Of the 2,872 launched in 2010, 914 were equity funds, 577 were bond funds and 678 were mixed-asset funds. The year was also notable for a “significant movement in liquidations and mergers of funds” as a result of the consolidation induced by Ucits implementation, according to Lipper.
A further slowdown is also evident in Q1 2011, where 500 mutual funds were registered for sale in Europe compared with the 762 seen in Q1 2010.
“There were 31,493 mutual funds registered for sale in Europe as of the end of March 2011. 38% were equity funds, while the percentage of bond funds stood at 17%. The remaining funds were shared among mixed-asset funds – with 23%, money market funds – with 6%, and other funds, including real estate and commodity funds, with 16%”, Lipper said in its report.
The most popular funds launched in the first three months of this year were guaranteed funds, mixed-asset flexible funds and alternative Ucits, Lipper said.
