30 May 2011

EFAMA releases new figures on the contribution of European asset managers to the European economy

EFAMA has published its 4th Annual Review 'Asset Management in Europe: Facts and Figures'. The review provides a snapshot of the industry, looking at its overall size, general structure, asset allocation and client base.

Peter De Proft, Director General of EFAMA, comments: “This new EFAMA report provides for the first time hard figures about the key role played by European asset managers in helping governments, corporations and banks meet their short-term funding needs and long-term capital requirement. Even if the figures are estimations, their order of magnitude confirms the essential contribution of European asset managers to the overall development of the European economy”.

This year’s review highlights the following statistics:

Total assets managed in Europe bounced back to €13.8 trillion as at end 2010, from €12.4 trillion at end 2009 and €10.9 trillion at end 2008. The sustained economic recovery in 2010, the general market appreciation and strong investor demand for long-term investment funds were the main drivers behind the increase of total assets under management. In relation to GDP, total assets under management (AuM) is estimated to have reached 103% at end 2010 from 97% at end 2009 and 81% at end 2008.

More than 3,100 asset management companies are registered in Europe. Collectively, these companies directly employ around 80,000 individuals. Taking related services into account, such as accounting, auditing, custodianship, marketing, research, order processing and distribution, the overall level of employment associated with the asset management companies can be estimated at a multiple of that figure.

Asset managers play a number of key functions in the economy. They offer investors the means to manage risk by diversifying their financial wealth, and to reduce investment costs by operating on a large scale. They also contribute to the overall development of the real economy by providing an essential link between investors seeking appropriate savings vehicles and borrowers who need funds to finance their activities and developments. On the basis of data published by the European Central Bank and EFAMA’s calculations, European asset managers held 25% of the debt securities issued in the euro area at end 2009, and 52% of the value of the free-float market capitalisation of shares issued by euro area companies.

The UK, France and Germany accounted for 65% of total AuM at end of 2009, or €8,059 billion. The UK is the largest country in terms of discretionary mandates AuM (€2,675 billion at end 2009), whereas France is the largest country in terms of investments fund AuM (€1,568 billion at end 2009).

Institutional clients account for 68% of AuM and retail investors for the remaining 32%. The high share of institutional clients reflects their importance in the UK, where they account for 77% of total AuM, compared to 64% in France, 62% in Germany and 51% in Italy.

The dominant asset classes managed in Europe are bond and equity, with 44% and 32% of total AuM at end 2009, respectively. Thanks to the stock market recovery in 2009, the share of equity rebounded strongly from the lows reached in the midst of the global financial crisis (27% at end 2008), whereas bonds and money market instruments saw their share in the asset allocation decline in 2009.

Full report

© EFAMA - European Fund and Asset Management Association