Rise in European assets under management, says EFAMA
25 September 2018 Brussels
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Assets under management (AUM) in Europe rose to €25 trillion in 2017, The European Fund and Asset Management Association (EFAMA) revealed in the 10th edition of its assets management report.
The report found that total assets under management (AUM) in Europe increased by 10 percent in 2017 totalling €25.2 trillion.
Meanwhile, investment funds assets managed in Europe represented €13.1 trillion (52 percent) of total AUM at the end of 2017, with discretionary mandates accounting for the remaining €12 trillion (48 percent).
According to EFAMA, asset managers typically receive mandates from institutional clients, whereas retail investors are generally offered investment funds.
The report also cited that institutional investors represent the largest client category of the European asset management industry, which accounts for 71 percent of total AUM at end 2016.
Pension funds and insurance companies accounted for 28 percent and 25 percent of total AUM respectively.
Further findings from the report recorded that bond assets accounted for 41 percent of total AUM at the end of 2016, compared to 31 percent for equity assets.
The EFAMA report noted that three countries hold a significant market share in AUM in Europe: the UK (35 percent), France (17 percent), and Germany (9 percent).
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, EFAMA revealed.
Additionally, close to 4,200 asset management companies are operating in Europe, the report found.
Peter De Proft, director general of EFAMA, commented: “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 €25 trillion, they help to fund 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.”
He added: “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.”
The report found that total assets under management (AUM) in Europe increased by 10 percent in 2017 totalling €25.2 trillion.
Meanwhile, investment funds assets managed in Europe represented €13.1 trillion (52 percent) of total AUM at the end of 2017, with discretionary mandates accounting for the remaining €12 trillion (48 percent).
According to EFAMA, asset managers typically receive mandates from institutional clients, whereas retail investors are generally offered investment funds.
The report also cited that institutional investors represent the largest client category of the European asset management industry, which accounts for 71 percent of total AUM at end 2016.
Pension funds and insurance companies accounted for 28 percent and 25 percent of total AUM respectively.
Further findings from the report recorded that bond assets accounted for 41 percent of total AUM at the end of 2016, compared to 31 percent for equity assets.
The EFAMA report noted that three countries hold a significant market share in AUM in Europe: the UK (35 percent), France (17 percent), and Germany (9 percent).
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, EFAMA revealed.
Additionally, close to 4,200 asset management companies are operating in Europe, the report found.
Peter De Proft, director general of EFAMA, commented: “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 €25 trillion, they help to fund 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.”
He added: “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.”
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