The report is primarily based on data received from European Fund and Asset Management Association (EFAMA) member associations on the value of the assets managed in their countries at the end of 2015.
The report also explains the role of the asset management industry in the economy, the services it provides to investors, its specificities compared to other financial services institutions, and its contribution to the financing of the European economy. It provides a high level description of the Capital Markets Union initiative, and its goal to rebalance the European financial system towards a more “market based system” in which asset managers will play a more active role.
The report’s highlights include:
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Total Assets under Management (AuM) in Europe increased by 6% in 2016 to EUR 22.8 trillion. In relation to GDP, the value of AuM is estimated to reach 138% at end 2016, compared to 81% at end 2008.
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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 (EUR 68 trillion).
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Investment fund assets represented EUR 11.8 trillion or 52% of total AuM at end 2016, with discretionary mandates accounting for the remaining EUR 11.0 trillion or 48%. Asset managers typically receive mandates from institutional clients, whereas retail investors are generally offered investment funds.
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Bond assets account for the lion’s share (42% at end 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%. On the other hand, there has been a rise from 19% to 10% in the share of other assets, such as real estate, hedge funds, structured products and private equity.
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More than 4,000 asset management companies are registered in Europe directly employing 100,000 people. Taking into account related services along the asset management value, it is estimated that another 460,000 people are indirectly employed in functions servicing the asset management industry.
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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 end 2015.
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European asset managers held 27% of the outstanding debt securities issued in the euro area at end 2015, and 54% of the value of the shares issued by euro-area companies that were readily available for trading in the market. These figures highlight the role played by asset managers in the financing of Europe’s economy.
Press release
Report
© EFAMA - European Fund and Asset Management Association
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