NU Online News Service, June 20, 2003, 5:07 p.m. EDT – The bear market is slowing efforts by European banks and insurers to open distribution networks to outside funds, according to analysts at Cerulli Associates Inc., Boston.

When investment returns were strong, many European financial services executives thought their companies could compensate for reduced revenue from sales of in-house funds by collecting distribution revenue from outside fund companies.

Now, the Cerulli analysts write, European financial services companies are scrapping for all the revenue they can get, and the companies are finding that maintaining a huge menu of funds is expensive.

Some companies have coped by focusing on a small number of outside funds that offer strong performance and strong wholesaling support, the analysts report.