Tue, Jun 2, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

European assets under management have more than doubled in the last decade

Tuesday, September 17, 2019
Opalesque Industry Update - The European Fund and Asset Management Association (EFAMA) has just published the 11th edition of its Asset Management Report. The report aims to highlight the fundamental role of asset managers in the financial system and wider economy, channelling savings of European citizens towards investments and putting these savings to work productively for the economy.

The report provides detailed data on the assets under management in Europe, the location of the asset management activity, the clients of the industry, the evolution of the asset allocation, and the contribution of the industry in terms of employment.

Highlights of the report include:

?¦? Total Assets under Management (AuM) in Europe is estimated at EUR 23.1 trillion, an increase of 113% since end-2008. Investment funds assets represented EUR 12.5 trillion (%) - 54% of total AuM - with discretionary mandates accounting for the remaining EUR 10.6 trillion. Although down from 2017 due to the sharp decline in global stock markets towards the end of 2018, total assets have more than doubled from the lows they reached during the global financial crisis of 2008.

?¦? Since 2011, the share of investment funds in total AuM has risen every year. This has occurred largely as a result of the much higher proportion of equities in the portfolio allocation of investment funds (42% of total investment funds AuM) than in mandates (22% of discretionary mandates AuM) - coupled with the strong rise of stock markets over the 2012-2017 period. The increase in the share of investment funds in the portfolio allocation of pension funds and insurance companies has also played a role in this evolution.

?¦? Three countries hold a significant market share in assets under management in Europe: the UK (37%), France (17%) and Germany (9%). These high market shares reflect the size of these countries' economies, their experience in financial services as well as their pool of savings accumulated over the years.

?¦? In most European countries, the asset management industry serves predominantly domestic clients. The UK is the main exception with 40% of AuM managed on behalf of foreign clients.

Tanguy van de Werve, Director General of EFAMA, comments: "This latest edition of EFAMA's Asset Management Report highlights the important role played by the European asset management industry in managing investments on behalf of European citizens and institutional investors. The observed continuing increase in the share of investment fund assets in the total assets managed in Europe confirms the success of UCITS as a global brand and the quality of the regulatory framework for the management of alternative investment funds (AIFs). The overall ecosystem created to support the operations of UCITS and AIFs on a cross-border basis, including the well-functioning model of delegation and the flexibility offered to outsource back-office functions, has allowed to benefit from the best expertise available and played an essential part in the global acceptance of UCITS and AIFs. Ensuring the continued success of these investment vehicles should be a strategic goal for the new European Commission, and an integral part of the plan to create a well-functioning Capital Markets Union."

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing: Singer bets on Europe, emerging markets, Britain's unhealthy appetite for financial risk in essential services, How Stan Druckenmiller shook up his portfolio[more]

    Singer bets on Europe, emerging markets From Investment Magazine: William Blair's Brian Singer is looking to invest in Europe and the emerging markets as the recovery from the global economic shutdown to contain the pandemic will likely take longer than what the market has priced in.

  2. PE/VC: How Covid-19 could reshape private equity fundraising, The private equity bet that coronavirus cut short[more]

    How Covid-19 could reshape private equity fundraising From Asian Investor: The pandemic looks may have led to greater use of remote capital-raising but might it also encourage investors to establish more overseas offices? The coronavirus outbreak has inevitably hit the amount of mo

  3. Investing: Millennium hedge fund ups bet against Bank of Ireland, Value rotation was the last thing big funds thought would happen, Al Gore's firm sold Amazon and Microsoft stock. Here's what it bought.[more]

    Millennium hedge fund ups bet against Bank of Ireland From Independent: US hedge fund Millennium International Management has raised its bet against Bank of Ireland's shares. It comes as Davy says 2020 will be a write-off for banks, with losses across Irish lenders of €4bn. M

  4. PE/VC: Private equity in the Covid-19 crisis, Carlyle's Africa dealmakers leave to start their own buyout firm, UK asset managers plan shift to off-market strategies including private equity[more]

    Private equity in the Covid-19 crisis From Morning Star: Private equity investment trusts invest in unquoted companies not yet listed on the stock market. How have they fared in the sell-off? Investment trusts have been caught up in the market turmoil of recent months and private equit

  5. New Launches: Apeira Capital seeks $200m for hedge fund-like bets, PIMCO filing reveals ESG fund launch could be ahead, BEA Systems co-founder launches venture fund, Salesforce Ventures launches $125m Europe Trailblazer Fund, The D. E. Shaw group closes first onshore China investment fund, Legg Mason and ClearBridge launch non-transparent ETF, Hong Kong-based asset manager MaiCapital launches actively managed bitcoin hedge fund[more]

    Apeira Capital seeks $200m for hedge fund-like bets From Bloomberg: Natalie Hwang, the former head of Simon Property Group Inc.'s venture capital arm, has launched a new firm and is seeking $200 million for a debut fund. Hwang has been discussing the vehicle with prospective investors, ac