The 9th annual edition of the European Fund and Asset Management Association’s Asset Management Report has highlighted that over half a million people are directly or indirectly employed by the industry in the region.
Efama’s annual report highlights a number of key structural trends including:
- Total AUM in Europe increased by 6% in 2016 to €22.8trn. In relation to GDP, the value of AUM is estimated to have reached 138% at the end of 2016, compared to 81% at the end 2008.
- Europe ranks as the second largest market in the global asset management industry, managing 31% of the total amount of assets managed globally at end 2015 (€68trn).
- Investment fund assets represented €11.8trn or 52% of total AUM at the end of 2016. Discretionary mandates accounting for the remaining €11trn or 48%.
- Bond assets account for the largest share, 42% at the end of 2015, in the investment portfolio managed in Europe, compared to 32% for equity assets. Since 2008, the share of liquid instruments in asset managers’ portfolio has declined from 16% to 8%.
- More than 4,000 asset management companies are registered in Europe directly employing 100,000 people. Including related services it is estimated that another 460,000 people are indirectly employed in functions servicing the asset management industry.
- Institutional investors, acting on behalf of millions of households, represent the largest client category of the European asset management industry, accounting for 73% of total AuM in Europe. Pension funds and insurance companies each accounted for 27% of total AUM at the end of 2015.
- European asset managers held 27% of the outstanding debt securities issued in the eurozone at the end of 2015, and 54% of the value of the shares issued by eurozone companies that were readily available for trading in the market.
In perspective of the pending Brexit negotiations, the Efama report notes that a quarter of the 4,000 asset management companies registered in the region are located in the UK. France is second with some 627 – according to the data put forward. Paris has recently made moves to entice more asset managers to set up shop in France.
The average AUM managed by firms in the UK is also the highest in the region, at some €9.4bn each, according to Efama’s estimates of assets across both UK Investment Association members and non members.
Click here to read the full research report:Asset Management Report 2017 (Final)
Also published is the latest monthly fund flows data from Thomson Reuters Lipper, which indicates April saw net sales across the region perform positively for the fourth month in a row.
Bond funds saw net inflows of €21bn, followed by mixed-asset funds €8.4bn, equity funds €6.4bn, and alternative Ucits products €2.1 bn. Property funds gained €0.4bn and commodity products €0.3bn, according to report author Detlef Glow, head of EMEA research. The only asset type with net outflows in the long-term investment funds segment was “other” funds, which suffered net outflows of €0.4bn.
The April monthly net inflow of €54bn took 2017 year-to-date inflows to €266.5bn.
In terms of domiciles, funds based in Luxembourg led, with net inflows of €22.3bn. Ireland, €22bn, the UK, €5.5bn, Germany, €2.3bn, and Sweden €1.2bn were the other strongest markets on this basis. Spain experienced the highest net outflows, -€0.9bn, while Finland, -€0.6bn and Italy, -€0.2bn, also experienced net outflows through the month.
Click here to read the full report:Fund Flow Report – April 2017