Fund launches halve in Q1 as consolidation gathers pace

The number of new funds being launched into the European market has dropped by half from the peak in 2008 as asset managers struggle through a tough business environment.

Data from Lipper covering the first quarter of this year shows new launches have fallen by 50% from their peak in the first quarter of 2008, and posted the lowest quarterly number in five years. The industry is continuing to consolidate product ranges, Lipper found, with a total of 698 funds withdraw from the market in Q1, of which 493 were liquidated and 205 were merged. In contrast, only 506 new products were brought to the market, a fall of 36% from the same period the previous year. Fund wind-ups increased 11% between 2011 and 2012, driven by a renewed focus on cost cutting thr...