Total Assets under Management (AUM) in Europe increased by 10 per cent in 2017 to EUR25.2 trillion, according to the 10th edition of the European Fund and Asset Management Association (EFAMA) Asset Management Report.
In relation to GDP, the value of AUM is estimated to have reached 147 per cent at the end of 2017, up from 102 per cent in 2007.
Investment funds assets managed in Europe represented EUR13.1 trillion or 52 per cent of total AUM at end 2017, with discretionary mandates accounting for the remaining EUR12 trillion or 48 per cent. Asset managers typically receive mandates from institutional clients, whereas retail investors are generally offered investment funds.
Institutional investors represent the largest client category of the European asset management industry, accounting for 71 per cent of total AUM at end 2016. Pension funds and insurance companies accounted for 28 per cent and 25 per cent of total AUM, respectively.
Bond assets accounted for 41 per cent of total AUM at end 2016, compared to 31 per cent for equity assets. The share of equity held in discretionary mandates fell from 35 per cent in 2007 to 24 per cent in 2016. This development contrasts with the evolution of the share of equity held in investment fund portfolio, which returned in 2016 to its level of 2007 (40 per cent).
Three countries hold a significant market share in assets under management in Europe: the UK (35 per cent), France (17 per cent) and Germany (9 per cent). 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.
Close to 4,200 asset management companies are operating in Europe. It can be estimated that these companies employ about 110,000 people. Taking into account related services along the asset management value chain, it is estimated that another 500,000 people are indirectly employed in functions servicing the asset management industry.
Peter De Proft (pictured), Director General of EFAMA, says: “The new edition of EFAMA’s Asset Management Report confirms asset managers are a key part of the European financial ecosystem. Through the active management of EUR25 trillion, they help the funding of new investment projects and put savings of European citizens to work productively in the economy by investing their money in companies, government and projects, with the aim of generating returns to millions of savers and investors. The significance of that role cannot be underestimated at a time when individuals need to save more to have a comfortable retirement. EFAMA will continue to work together with EU policymakers in the future to ensure that the European asset management industry remains globally competitive, for the benefits of European citizens.”