Is there room only for the biggest, most aggressively-marketed funds in crisis-hit Europe?
Europe’s ten best-selling funds have attracted nearly a third of net sales across bonds, equity and mixed assets so far this year, as the grey bars show in the following chart from Thomson Reuters’ fund research firm Lipper.
The numbers — which exclude ETFs — are even more staggering if looking at at the concentration of sales into groups/companies, rather than at fund level.
Then, data compiled by Fitch ratings using Lipper shows that over the past three years Europe’s ten biggest firms have attracted around 80 percent of flows into fixed income, equity and mixed assets.
“Everyone has been surprised by the extent of the fund flow concentration,” said Aymeric Poizot, Head of Fitch Ratings EMEA Fund & Asset Manager Rating Group. He believe it is time for a “serious strategic review” at smaller funds to allow them to compete in an increasingly globalised fund market where retail investors are turning back to seemingly risk-free bank deposits and new skills are needed to hunt for increasingly rare yields for bigger investors.