Currently, mutual fund supermarkets in Europe represent only about one percent of net new flows into European funds. However, as the European fund industry continues to develop, fund supermarkets there will become a crucial distribution channel, according to a report that will be released later this month by the London office of Cerulli Associates of Boston.

"We analyzed the main supermarkets in Europe and we found that from the flows that they have at the moment, and comparing those flows with the forecast we have of the mutual fund market in the future, we estimate that in Europe, flows through fund supermarkets will represent around 25 percent of all new flows by 2005," said Stephanie Bologna, an analyst at Cerulli.

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