A total of 536 mixed-asset funds were launched in Europe last year, up from 531 funds in 2013, and just outpacing the 531 new bond funds launched in 2014, the data found.
Mixed-asset funds have become increasingly popular among European investors as they can invest across the whole investment landscape using shares and bonds as well as cash. In a low yielding environment, these funds can offer better returns than a traditional bond fund without the higher risk profile of a pure equity fund.
Lipper said equity funds still dominate the European fund market, accounting for 37% of funds available for sale, followed by mixed-asset funds with 25%. Bond funds had 22% of the market.
During 2014, a total of 2,218 funds were launched in Europe, which was in line with the number of launches in 2013 and 2012 but still well down on the peak year of 2010.
“The stable activity in terms of fund launches might be an indicator of stable demand for new products by investors, since their chase for yield may have made them more open to new (alternative) investment strategies,” Lipper said in a statement.
As at the end of last year there are now 31,892 mutual funds registered for sale in Europe with the largest number domiciled in Luxembourg, which hosted 8,905 funds. France, where 4,715 funds were domiciled is the second largest centre in Europe.
