Detlef Glow, head of EMEA research at Lipper, notes that the flurry of multi-asset fund launches has largely been a consequence of investor demand. Indeed, multi-asset and multi-strategy funds have been the best-selling asset class over the past four years: since August 2012, these funds have seen an absolutely staggering amount of net inflows: €484.5bn, according to Morningstar data. By comparing this number to the total assets under management now, it becomes apparent how relentlessly investors have been pouring money into the asset class.
Brexit-boost
With investors still keen on absolute return products, this trend is likely to continue for some time. But Glow identifies another factor which will possibly upend the declining fund population: Brexit.
“We are expecting the number of products to rise over the course of the next two years. Investment managers based in the United Kingdom will ensure their [post-Brexit] access to the continental European market with the launch of products that are domiciled in the EU, while EU-based asset managers may start to launch funds that are domiciled in the U.K.,” he said. “The first scenario is expected to lead to an even higher dominance of Luxembourg and Ireland as international fund hubs in Europe, while the latter may drive up the number of products domiciled in the U.K.”
