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Laxman Pai, Opalesque Asia: The European asset management industry entered 2020 coming off record highs in aggregate revenues and profits, said a report.
According to the report by McKinsey, European asset managers weathered the challenges, ending the year with a record €25.2 trillion ($30tn) in assets under management (AUM), up 5 percent over 2019.
While the human suffering and economic impact are ongoing, 2020 proved to be unprecedented for asset managers, as it was for so many business sectors. The markets underwent intense stress toward the end of March 2020, and accordingly, European investors sought safer assets, withdrawing more than €100 billion in the first quarter.
"Markets quickly recovered, however, and with them, net flows into long-term investments. The resulting €750 billion in net flows across all asset classes and segments increased European managers' AUM by 3.2 percent for all of 2020, the third-highest annual net flow effect over the preceding 13 years," pointed out the study.
In total, AUM in Western Europe expanded by €1.2 trillion to €25.2 trillion in 2020, a rate of 5 percent. However, rates of AUM growth slowed quite a bit: growth in institutional assets fell from 12 percent in 2019 to 5 percent, while retail asset growth declined from 15 percent to 6 percent.
The Western European revenue pool grew 7 percent for the year to €55 billion, and the profit pool increased 11 percent, to €22.8 billion. However, Europe's managers ag...................... To view our full article Click here
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