EFAMA analyses European fund industry trends 01 July 2020Brussels Reporter: Maddie Saghir
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Net assets of cross-border funds have grown significantly over the last decade, from €2.8 trillion in 2009 to €7.8 trillion at the end of 2019, according to a new report from the European Fund and Asset Management Association (EFAMA).
The new report, 2020 industry Fact Book, provides an analysis of trends in the European fund industry as well as international level, focusing on the US, and other advanced economies and emerging markets.
EFAMA found that the growth seen in net assets in recent years has been driven by strong net sales of cross-border funds outside of Europe, accounting for about half of total fund sales in 2018 and 2019.
Elsewhere, the report noted that institutional investors are by far the largest investors in investment funds.
Insurers and pension funds accounted for almost half (42 percent) of total investment fund ownership at the end of 2019, and this share has increased in recent years, the report said.
Meanwhile, retail investors accounted for only 23.8 percent of fund ownership and their share has declined steadily these past years.
Looking to other key developments in 2019 and over the past decade, EFAMA identified that net sales of UCITS and alternative investment funds (AIF) rebounded to €542 billion in 2019, rallying from the low reached in 2018 (€258 billion).
Net sales of European investment funds more than doubled in 2019, despite lingering concerns over trade tensions and economic growth, according to the report.
UCITS saw net sales bounce back to €391 billion in 2019 and net sales of AIFs rose to €151 billion.
EFAMA explained that total net sales of UCITS and AIFs represented 46 percent of the net asset growth over the last decade.
UCITS and AIFs attracted €4,708 billion in new net inflows over the last ten years. The associated noted that these cumulative net sales represented 46 percent of the growth in fund assets. Market appreciation accounted for the remaining 54 percent of net asset growth.
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