Fitch, which rates funds and asset managers, said houses with high profile funds over €1bn (£793m) were more competitive compared to asset managers with a smaller range of funds.
The US and UK currently dominate the large fund space, with just 430 funds out of 12,000 cross border offerings in mainland Europe having assets of over €1bn.
Fitch’s managing director for its fund and asset manager group Aymeric Poizot told City A.M.: "US and UK fund managers are more active in emerging market funds, global bond funds and multi asset, where recent growth has been.
“If you are an asset manager and you want more assets under management you need to add capacities where growth will be.
“But most mainland European managers are not as diversified for business and most will have missed the emerging markets story. They also need to be more active on a cross border basis."
Of the top ten players with the largest number of funds but smallest flagships, nine are based in mainland Europe.