1 FUNDMARKET INSIGHT REPORT NOVEMBER 2013 LAUNCHES, LIQUIDATIONS, AND MERGERS IN THE EUROPEAN MUTUAL FUND INDUSTRY, Q CHRISTOPH KARG Content Specialist for Germany & Austria Executive Summary As of the end of September 2013, there were 31,925 mutual funds registered for sale in Europe. Luxembourg continued to dominate the fund market in Europe, hosting 8,618 funds, followed by France, where 4,876 funds were domiciled. For Q3 2013, 442 funds were created in Europe. During the same period 458 funds were liquidated and 255 funds were merged. The total number of funds showed a decrease of 271 products for third quarter For third quarter 2012 the net decrease had been slightly higher at 308 products. View of 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 26%. Bond funds stood at 22%, while money market funds represented 4% of the market. The remaining 11% of other funds were real estate funds, commodity funds, guaranteed funds, unclassified, and funds of hedge funds. Figure 1 Distribution of Mutual Funds Registered for Sale in Europe by Asset Type as of the End of September 2013 The quarterly net change in the European fund universe showed a negative result, but the trend was slowing. Only mixed-asset funds countersteered this trend with a positive net change in the number of available products. DETLEF GLOW Head of Lipper EMEA Research
2 Quarterly Comparison During Q3 2013, 442 funds were launched in Europe. The quantity of newly launched products was comparable with the number from the preceding quarter, when 432 funds were launched. Q3 s number showed an increase of 9% against the number of newly listed products for Q3 2012, when 404 funds were launched. Fund liquidations were down from 502 funds for Q to 458 funds for Q (-9%). Compared with third quarter 2012 (471), the decrease in liquidations for Q was roughly flat. During the same period the number of fund mergers showed no real change: Q had 241 mergers compared to 255 mergers for Q For Q2 2013, 355 funds were merged, so measuring Q against Q we saw a decrease of 28%. Figure 2 Overview of New Fund Launches, Mergers, and Closures of Investment Funds Comparing third quarters since 2010 the number of liquidations and mergers seemed to be stable. With 442 newly launched funds for Q3 2013, we saw the highest number of newly launched funds since Q
3 Launches, Mergers, and Liquidations Over the Past Five Years The change in net size of the European fund universe has been negative since Q We saw the lowest net growth in Q2 2012, with 340 mergers, 535 liquidations, and just 417 newly launched funds (for a total decline of 458 products). For Q the number of mergers and liquidations went down, while at the same time we noticed a small increase in fund launches. Figure 3 Launches, Mergers, and Closures of Investment Funds Net Change Over the Past Five Years Since Q the net changes have shown consistently negative results. But it looks like that trend is slowing. Comparing Q with the previous quarter s net changes, we see a decrease of 271 funds against 425 funds (-36%). Looking back one year we notice a net decrease of 308 funds for Q3 2012, 12% higher than the current number. Figure 4 Net Change in Number of Funds Registered for Sale in Europe
4 Changes in European Fund Universe by Asset Classes, Q Q witnessed the launch of 442 funds: 133 equity funds, 120 bond funds, 155 mixedasset funds, 23 other funds, and 11 money market funds. During the same period 458 funds were liquidated: 148 equity funds, 58 bond funds, 91 mixed-asset funds, 145 other funds, and 16 money market funds. For Q3 2013, 255 funds were merged: 76 equity funds, 70 bond funds, 59 mixed-asset funds, 15 other funds, and 35 money market funds. Figure 5 Overview of New Fund Launches, Mergers, and Closures, July 1, September 30, 2013 Mixed-asset funds showed the only positive net change, summing up the numbers of launches, liquidations, and mergers on an asset class basis.
5 Summary and Outlook Consolidation continues, considering the net change in the European funds universe. But the picture is slightly different, since the numbers of mergers and liquidations are staying at the same level. Comparing Q with Q3 2013, while the number of launches has gone up about 10%, we see a different picture in the segments: other funds showed massive closures, and the number of mixed-asset funds increased slightly. Regulation, regulation, regulation... Is still the key topic for European asset managers. We are now in the midst of the transformation process in regard to AIFMD guidelines, which needs to be finished by July Concurrently, UCITS V will be pushed forward, and the agenda for UCITS VI is also on the way. In addition, other regulations such as EMIR and MiFID II will also impact the asset management industry. One of the UCITS VI topics is the revision of the regulation for money market funds in regard to redemption fees, cash reserves, redemption gates, etc. As of now it is not clear how the products might be regulated when the process is finalised, but the changes might have a massive impact on this asset class. European money market funds will hold approximately 22% of all short-term bonds issued by the governmental or the corporate sector as well as approximately 38% of the short-term bonds from the banking sector (source: Association of the Luxembourg Fund Industry [ALFI] stats). The major domiciles for funds of this asset class are France and Luxembourg. In the largest domicile, Luxembourg, about 10% of the assets under management in investment funds are invested in money market products. Low interest rates would lead to outflows in this sector. During the ALFI road show in Frankfurt Lipper had the chance to speak with Camille Thommes (General Director of ALFI) about the upcoming challenges for the European fund industry. Mr. Thommes raised concerns about the ongoing discussion regarding money market funds and stated the importance of this product category for the markets: we have a well-regulated, established product in the market; if we see too much regulation here, we might see investors drifting away from Europe. The speed of regulation has increased significantly since the financial crisis, but the industry definitely needs time for implementation, and one of the most important challenges is not to miss the investor in this way. We need to ensure that we will guide him through this process and explain why and what we are doing, stated Mr. Thommes. Lipper U.S. Client Services Lipper Europe Client Services (UK) (Europe) Lipper Asia Client Services lipperweb.com 2013 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.
Closed-End Funds Understanding Leverage in Closed-End Funds The concept of leverage seems simple: borrowing money at a low cost and using it to seek higher returns on an investment. Leverage as it applies
Ladies and gentlemen, I also would like to kindly welcome you to the presentation of our nine months figures. After you got the overview from Christoph and as he mentioned in the beginning, I would like
May 2014 Help in Defined Contribution Plans: 2006 through 2012 Table of Contents Introduction Executive Summary 3 About This Report 8 Data Sample Information 10 Defining Help 11 Results Participants Using
EN Case No COMP/M.3894 - UNICREDITO / HVB Only the English text is available and authentic. REGULATION (EC) No 139/2004 MERGER PROCEDURE Article 6(1)(b) NON-OPPOSITION Date: 18/10/2005 In electronic form
Lane Clark & Peacock LLP Pension Buyouts 2009 This is the second edition of the Lane Clark & Peacock LLP Pension Buyouts report. It provides an in-depth analysis of pension buyout and longevity transactions
March 2015 CONTRIBUTORS Phillip Brzenk, CFA Associate Director Global Research & Design firstname.lastname@example.org Aye Soe, CFA Senior Director Global Research & Design email@example.com A Tale of Two Benchmarks:
Year-End 2014 CONTRIBUTOR Aye M. Soe Senior Director Index Research & Design firstname.lastname@example.org SPIVA U.S. Scorecard SUMMARY Starting with this scorecard, S&P Dow Jones Indices has begun reporting the relative
PRACTICE NOTE When rates rise, do stocks fall? The performance of equities and other return-seeking assets in rising and falling interest rate scenarios, January 1970 through September 2013 William Madden,
FUND STRUCTURES AS SYSTEMIC RISK MITIGANTS SEPTEMBER 2014 In our May 2014 ViewPoint entitled Who Owns the Assets? Developing a Better Understanding of the Flow of Assets and the Implications for Financial
Annual report 2014 Tryg Forsikring A/S (CVR-no. 24260666) Contents Company details... 3 Management s review... 4 Statement by the Supervisory Board and the Executive Management... 37 Independent auditor's
SALES OPPORTUNITY ASSESSMENT PRODUCT CATI EMERGING MARKET ENTRY STRATEGY CUSTOMER INTELLIGENCE MARKET SIZING AND FORECASTING INDUSTRY BEST PRACTICE CUSTOMER NEED BEST PRACTICE ASSESSMENT COMPETITIVE INTELLIGENCE
2013 Taxes in Sweden An English Summary of Tax Statistical Yearbook of Sweden 2013 Taxes in Sweden An English Summary of Tax Statistical Yearbook of Sweden Preface The Swedish Tax Agency has just published
UCITS Where we are now January 2015 c Section or Brochure name Foreword The Undertakings for Collective Investments in Transferrable Securities (UCITS) product has been a European success story since its
Public Spending Under Labour 2010 Election Briefing Note No. 5 (IFS BN92) Robert Chote Rowena Crawford Carl Emmerson Gemma Tetlow Series editors: Robert Chote, Carl Emmerson and Luke Sibieta Public spending
WHY HAS THE UK CORPORATION TAX RAISED SO MUCH REVENUE? Michael P. Devereux Rachel Griffith Alexander Klemm THE INSTITUTE FOR FISCAL STUDIES WP04/04 WHY HAS THE UK CORPORATION TAX RAISED SO MUCH REVENUE?
Technical Discussion Paper B for public comment Enabling a better income in retirement 21 September 2012 National Treasury Contents Contents... 2 1. Introduction... 3 Executive Summary...3 Living annuities...4
1 Dealing with Cash, Cross Holdings and Other Non-Operating Assets: Approaches and Implications Aswath Damodaran Stern School of Business September 2005 2 The Value of Cash and Cross Holdings Most businesses
TECNOTREE CORPORATION FINANCIAL REPORT 1 JAN 31 DEC 2014 (UNAUDITED) 30 January 2015 at 8:30 am Tecnotree is a global supplier of telecom IT solutions, providing products and services for charging, billing,
1 Valuing Financial Service Firms Aswath Damodaran April 2009 Valuing banks, insurance companies and investment banks has always been difficult, but the market crisis of 2008 has elevated the concern to
2013 Annual Report 2013 Annual Report 1 2013 Annual Report of the Sydbank Group Today the Board of Directors of the Sydbank Group has approved the audited 2013 Annual Report. Highlights The Sydbank Group
How competitive is nuclear energy? by J.H. Keppler* The economic competitiveness of nuclear energy will be crucial for determining its future share in world electricity production. In addition, the widespread
Research Insight into the Impact Investment Market An in-depth analysis of investor perspectives and over 2,200 transactions J.P. Morgan Yasemin Saltuk Global Impact Investing Network Amit Bouri (1-212)
2015 Star Ratings Motorbike Insurance Discussion Paper Defaqto Limited 2014. All rights reserved. No parts of this publication may be reproduced in any form by any means, whether electronic, mechanical,
FOREIGN DIRECT INVESTMENT IN THE UNITED STATES October 2013 This report was prepared by the Department of Commerce and the President s Council of Economic Advisers Executive Summary The United States has
Orc Software AB Interim report January 1 March 31, 2005 Revenue for January-March 2005 increased by 2 percent compared to the equivalent period in the previous year and amounted to SEK 66 (65) million.
Asset Management Luxembourg, your location of choice Seizing opportunities in Luxembourg This publication is exclusively designed for the general information of readers only and does not constitute professional