European fund platform markets maintain strong AUA growth
Europe’s fund platform markets maintained double digit growth in assets under administration (AUA) in 2015, according to the latest Platforum research on European fund distribution.
The European platform market totalled €1,843bn at the end of 2015, an increase of 13.8% since Q3 2014, data from the Platforum’s report titled Market Overview 2016 shows.
The UK platform market represented 35% of the total AUA in Europe. Of the most recent M&A deals in the European platform space, eight of 15 significant deals have involved UK platforms.
Italy, meanwhile, has become the second largest platform market overtaking Switzerland, as it is one of the fastest growing platform markets in Europe, after Spain and Sweden.
“We continue to see strong AUA growth of platform markets across Europe. The predominantly retail UK platform market retains its slice of the pie with 35% of the total assets, followed by two heavily institutional platform markets: Italy and Switzerland,” said Platforum senior analyst Rodolfo Crespo.
“Growth has accelerated in Spain and Sweden, helping the leading platforms in those countries, Allfunds Bank and MFEX, enjoy two of the highest growth rates of all European platforms,” he added.
The Platforum report also shows fund group perceptions of Mifid II. “End investors” and “direct platforms” stand to win the most from the changes resulting from Mifid II, according to a survey of fund groups.
On the contrary, local fund groups and insurance companies are more likely to lose as a result of Mifid II, according to fund groups.
“In the run-up to Mifid II, some propositions are having more success than others. For example, platforms serving institutional channels across multiple jurisdictions are doing better than those operating locally. In the adviser platform segment, UK platforms are growing faster than their peers in Germany and France,” Crespo said.
“However, while there are fewer direct-to-consumer propositions in continental Europe than in the UK, some are experiencing rapid growth at a comparable rate to the UK market leader, Hargreaves Lansdown,” he said.