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European asset management industry bounces back

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Total assets managed by institutional and retail asset management companies in Europe bounced back to EUR12.8trn as at end 2009, from EUR10.8trn at end 2008, according to figures from the European Fund and Asset Management Association. 

The stock market rally and the recovery of net inflows into Ucits were the main drivers behind the increase of total assets under management. 

In relation to GDP, total AUM rose to 100 per cent at end 2009 from 80 per cent at end 2008.   

More than 2,500 asset management companies are registered in Europe. Collectively, these companies directly employ around 73,000 individuals. Taking related services into account, such as accounting, auditing, custodianship, marketing, research, order processing and distribution, the overall level of employment associated with the asset management companies can be estimated at a multiple of that figure.
 
The UK, France and Germany accounted for 66 per cent of total AUM at end of 2008, or EUR7,062bn. The UK is the largest country in terms of discretionary mandates AUM (EUR2,229bn at end 2008), whereas France is the largest country in terms of investment fund AUM (EUR1,394bn at end 2008).
 
Institutional clients account for 66 per cent of AUM and retail investors for the remaining 34 per cent. The high share of institutional clients reflects their importance in the UK, where they account for 79 per cent of total AUM, compared to 62 per cent in France, 60 per cent in Germany and 46 per cent in Italy.
 
Equities accounted for only 27 per cent of total assets under management at end 2008, compared to 37 per cent at end 2007. The financial crisis and the substantial falls in equity values in 2008 explained the substantial movements out of equities into bonds and money market instruments. With the recovery of the stock markets since April 2009, the relative proportion of equities must now be somewhere around 33 per cent.

Jean-Baptiste de Franssu, president of Efama, says: “This new Efama report – for the first time published in hardcopy – sheds new light on the key role played by the European asset management industry in managing long-term savings, allocating financial resources across industries and securing employment to hundreds of thousands of people. In the wake of the financial crisis, it is Efama’s ambition to continue serving investors’ interests and to work with regulators and authorities to adapt the regulatory environment.”
 

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