The total number of European-registered funds shrank by 139 products in the first quarter of this year to stand at 31,777, while Luxembourg continued to be the most popular place to base these funds, according to new data from Lipper, the research business.

The total number of European-registered funds rose slightly by 53 products in the first quarter of this year to stand at 31,777, while Luxembourg continued to be the most popular place to base these funds, according to new data from Lipper, the research business.

Luxembourg hosts 8,720 funds, followed by France, where 4,765 funds were domiciled. For the first quarter 2014, 541 funds were launched in Europe, nearly 25 per cent higher compared with the number of launches for the same period a year ago. During the same period 437 funds were liquidated and 263 funds were merged.

The first quarter saw 174 equity funds launched, along with 162 bond funds, 168 mixed-asset funds, 36 “other” funds, and one money market fund.

“Net changes in the number of available mutual funds still showed a decrease in total numbers, but the trend was slowing. The numbers of mutual funds being liquidated and merged were going down, while the number of newly launched products was going up. In consequence, the net changes were tending toward the zero line, and we might see them breaking through in second quarter 2014,” the report said.

There has been an overall decline in the number of funds over the past two years, which may be seen as a welcome trend in the eyes of people who have regarded Europe’s funds market as excessively fractured along national lines and who want to see it move towards being the kind of large, integrated market seen in the US with its economies of scale and lower fees.