Paul Burgin, the primary author of the report, says, "Whilst the European picture looks good overall, there are distinct variations in the outlook for each country. The European Union product and distribution landscape is still fragmented as most FOF providers only distribute in home territory."
Also cited are the predilection of the French fund groups to include "too many of their own funds in supposedly open-architecture FOF portfoliosm," according to Shiv Taneja, managing director at Cerulli Associates. Italian funds may, in fact, die out altogether because of Italy's strict interpretation of the Markets in Financial Instrument Directive (MFID).
Those managers expected to garner the most assets over that time will be, according to the report, "multi-asset absolute-return managers and aggressive FOF asset allocators."