The fund management industry faces its “most radical reshaping on record”, according to analysis focused on merger and acquisition activity in the industry. The report said institutional divestitures of asset managers, which made up almost half the deals in the first half, would continue for the rest of the year.

Jefferies Putnam Lovell, an investment banking boutique that tracks M&A activity in the funds industry, said in a report that the themes seen in the first half of the year would continue to drive asset management M&A in the second half.