Fund groups worst affected by the summer's Brexit outflows may have to increase marketing efforts to convince investors to return and to find new buyers, according to experts at Cerulli Associates.

Although the analytics firm is confident that the UK's decision to leave the EU is not a game changer, Cerulli's latest study finds most asset managers are not expecting the outflows to be magically reversed in the next month.

“However, outflows have stabilized and most industry watchers expect the second half of the year to show a more positive trend," says Barbara Wall, Europe managing director at Cerulli Associates, adding that the resultant shakeout may intensify the pressure on fees.

Meanwhile Cerulli's analysts do not believe that the passporting and UCITS-labelling rights of UK firms with funds domiciled in Luxembourg and Dublin, but managed out of London, will be withdrawn.  Any new conditions attached to these rights will, the firm says, be minimal.

"The EU would have little incentive to deprive itself of the expertise of Europe's biggest financial center, or to risk restrictions being placed on the export of EU goods and services into the UK," adds Wall, who believes that providers of passive vehicles may be the biggest beneficiaries as the market returns to some sort of normality.

Other findings from the latest issue of Cerulli’s European monthly product trends paper shows that there were 241 equity fund launches in the first six months of 2016, with BNP Paribas accounting for 22, followed by Edmond de Rothschild with nine.

Compared to 2015, however, launches are down by 38%, with 387 equity launches during the same period.  In terms of June launches by sector, equities global, asset allocation, and protected funds were the leaders.

Emerging market equity funds saw outflows in June, which might appear to call the recent recovery of flows into question. However, most analysts are optimistic.

Valuations support the case for those in search of cheaper stocks looking to EM. The S&P 500 has regularly been hitting record highs and the FTSE 100 is not far off its record, despite the volatility caused by Brexit.

June was the fourth consecutive month of net inflows for the cross-border market. However, that was not enough to turn the net result for the first half of the year into a positive number.

Net year-to-date outflows reached €32bn. Mixed asset funds and commodity funds were the only asset classes that posted net inflows, with €13.6bn and €0.7bn respectively.