In 2005, 222 mutual funds were merged into others, a 66% increase in fund mergers from the year before, The Wall Street Journal reports. And with merger and acquisitions activity increasing among investment management firms, experts expect the trend to continue in 2006.

In particular, smaller companies saddled with increasing regulatory costs are expected to leave the industry and merge their funds into others.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.