French AM industry almost hits €4trn AUM mark in 2017
French asset management association AFG has reported some €3.99trn of assets were managed by the local asset management industry as of 31 December 2017, up 6% year-on-year.
Assets managed through mandates for French clients were mostly invested in fixed income products for insurance clients and increased by 3% to €1.65trn according to AFG’s data.
In addition, assets managed in foreign funds in France have exceeded the €400bn mark. The French AM industry association suggests this results from the strengthening of distribution capabilities towards non-French residents clients by a number of asset management companies.
France-domiciled equity funds inflows reach level of 2011
Net inflows of France-domiciled funds have soared by 7.3% yoy (+€130.5bn of net new money over 2017) to reach €1.92trn of assets under management, split as following : €874bn in Ucits funds (up +9.8% in comparison to December 2016) and €1.05trn in alternative investment funds (+5.2% yoy).
Equity, bond and diversified Ucits funds have gathered €50bn in net new inflows over 2017. In detail, France-domiciled equity funds posted €11bn in net new cash last year (+16.3% yoy) while fixed income and diversified funds have reported increasing net inflows of €26.4bn (+10.6% yoy) and €12.3bn respectively in 2017.
AFG observed that inflows boarded by France-domiciled equity funds last year reached a level that has not been seen since 2011 and that new money in the fixed income segment has been poured primarily into short duration bond strategies.
Money market funds, representing a quarter of the French asset management industry’s total assets, have faced outflows of €1.1bn (-0.3% yoy) in 2017. AFG specified that AUM of traditional money market funds have increased by 1% last year while these of short-term money market strategies dropped by 6.8%.
First market in continental Europe
The French AM body highlighted that France had an 18% market share in the European asset management market just behind the United Kingdom (24%) and before Germany (15%). When adding mandate management figures, France remains the first continental Europe market of the asset management industry.
Assets under management of funds domiciled in Europe have reached €15.62trn at the end of 2017.
Regarding fund domiciliation, France ranks second for alternative investment funds in Europe (17.9%) behind Germany and before the Netherlands while it stands in fourth position for the domicilation of Uctis funds (market share of 8.9%); Luxembourg, Ireland and the UK leading the rankings.