The European Fund and Asset Management Association’s (EFAMA) Eighth Annual Review of the Asset Management industry in Europe focuses on the value of assets professionally managed in Europe, with a distinction between investment funds and discretionary mandate assets, across both the retail and institutional landscape.
The report is based primarily on questionnaire responses by EFAMA member associations covering data at end 2013.
The review also reports on the industry’s key characteristics and functions in the context of the wider financial system. In particular, it outlines the vital role the asset management industry plays in channelling savings toward investment in the general financing of the economy – and therefore its core contribution to an efficient and well-functioning Capital Markets Union (CMU).
Total Assets under Management (AuM) in Europe increased by approximately 15% in 2014 to EUR 19 trillion, from EUR 16.5 trillion at end 2013. In relation to GDP, the value of AuM is estimated to reach 124% at end 2014, up from 114% in 2013.
Europe ranks as the second largest market in the global asset management industry, managing one-third of the EUR 50 trillion global asset management industry at end 2013.
In Europe, discretionary mandates represented EUR 8,572 billion or 52% of total AuM at end 2013, while the share of investment fund assets in total AuM stood at 48% and amounted to EUR 7,884 billion at year end. Both investment fund and discretionary mandate assets stood at record high levels at end 2013.
Bond assets dominate asset managers’ asset allocation choice, with a share of 43% of all assets at end 2013. Equity assets accounted for 33% of assets, whilst money market and cash equivalents represented 8% of assets
More than 3,300 asset management companies are registered in Europe employing 500,000 people. About 90,000 people are directly employed, with a further 410,000 full-time equivalents indirectly employed in functions servicing the asset management industry.
Institutional investors, acting on behalf of millions of households, represent the largest client category of the European asset management industry, accounting for 74% of total AuM in Europe. Insurance companies and pension funds accounted for 39% and 33% of total AuM for institutional clients at end 2013, respectively.
European asset managers held 23% of the debt securities issued by euro area sectors at end 2013, and 42% of the value of the free float of euro area listed firms. These figures highlight the role played by asset managers in the financing of Europe’s economy.
Peter De Proft, Director General of EFAMA, says: “EFAMA’s Eighth Annual Review of Asset Management in Europe highlights the continuing growth of the industry and the increasingly important contribution it makes to the European economy. This makes our industry a key player in the wider financial system and one that has a prime position to support the EU in creating a Capital Markets Union (CMU).”