UK and US fund managers are better positioned than those in mainland Europe because they have more funds with €1 billion of assets, claims Fitch Ratings.
The credit ratings agency says that in the current competitive environment where fund flows are concentrated on a few players, having large, well established funds is key.
Of the 12,000 cross-border funds, only 430 funds (3.5%) have more than €1 billion of assets.
Of the top 10 players with more than 25 cross-border funds and highest proportion of flagships (more than €1 billion of assets), all but one are UK or US based.
“These managers have benefited from their expertise in global products, emerging markets and fixed income, where flows have concentrated in the recent years, as well as their active cross-border distribution strategy”, said Aymeric Poizot, managing director in Fitch’s fund and asset manager rating group.
By contrast, mainland European players offer fragmented fund ranges with few, if any, flagship funds. Of the 10 players with the largest ranges and smallest proportion of flagships, all but one are based in mainland Europe.
©2012 funds europe
