Traditional fund management groups are facing increased threats from purveyors of alternative investment vehicles, a development that should sound a "warning bell" for the industry, according to one consultancy.

For the first time since their creation, launches of mutual funds in the US were outstripped by those of alternative vehicles such as exchange traded funds, closed ended funds and variable annuities in 2007, according to Cerulli Associates, while sales of structured products nearly doubled to $114bn (£58bn, €73bn).