European Fund Supermarkets To Boom In Next 5 Years

by Carla Johnson, InvestorsOffshore.com, London

11 May 2001

According to a report released by Cerulli Associates, a provider of strategic assessments and new business development expertise to financial institutions, fund supermarkets in Europe have the potential to represent as much as 25 per cent of 'net new inflow' into Europe's fund industry by 2005.

Cerulli says its two-volume report, entitled European Fund Supermarkets: Alternative Distribution in Europe (vol 1) and Case Studies (vol 2), examines fund industries domiciled in European countries as well as cross-border operations. Based on a survey of 34 major fund supermarkets throughout the region, Cerulli concluded that the industry is set to expand on a such a scale that its growth will overtake that of the US mutual fund industry from current levels of £3.5 trillion to £6.7 trillion by 2005. Cerulli states: 'Europe's mutual fund industry will represent the best expansion potential for asset management firms worldwide during the next five years.'

It is expected that almost a third of Europe's mutual funds will be domiciled between Dublin and Luxembourg by 2005. Major fund expansion is also predicted in the UK, France, Germany, Italy, Spain, Sweden and Switzerland. The report estimates that the UK will represent £4.7 trillion (up from current levels of £2.4 trillion) within the same time scale. 'Fund supermarkets will represent the product choice and open architecture European consumers are increasingly demanding,' says the report.

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