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Some of the key findings and observations include: · Assets under management o Assets under Management (AuM) rose from EUR 10.8 trillion in 2008 to EUR 23.1 trillion at the end of 2018. o AuM rebounded in 2019 but the Covid-19 crisis brutally reversed this trend, which led to an estimated 11% decline in the first quarter of 2020. AuM picked up again in the second quarter to total circa EUR 24.9 trillion at end June. o Investment fund assets represented EUR 12,614 billion or 54.6% of total AuM at the end of 2018, steadily rising every year since 2011. The share of discretionary mandate assets stood at 45.4% of total AuM and amounted to EUR 10,482 billion. o At the end of 2018, more than 75% of European investment fund assets were managed in five countries: the UK (27%), France (18%), Germany 15%), Switzerland (9%) and the Netherlands (7%). AuM of discretionary mandates are even more concentrated, with 67% of assets being managed in the UK and France.
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· Asset allocation and clients of the industry
o In a market mainly dominated by institutional investors, bond assets accounted for 42% of investment portfolios, compared to 28% for equity assets and 6% for money market and cash equivalents at the end of 2018. However, the share of bonds and cash/money market instruments has been gradually declining in recent years, in favour of alternative assets. Another important trend is the growing share of passive management of long-term assets.
o At the end of 2018, pension funds became, for the first time, the largest industry clients, with a market share of 29%, ahead of retail clients and insurance companies.
o Domestic clients are by far the biggest group of clients of the European asset managers. Whereas their share in total AuM reached 73% in 2018, domestic clients represent an even higher share of AuM in most European countries.
· Financing of the economy
o Asset managers in Europe held an estimated 25% of debt securities and 30% of listed shares issued by euro area residents at the end of 2018. When using the free-float market capitalization, it is estimated that they held 53% of the value of the overall listed shares issued by euro area residents.
o At the end of 2018, the industry employed directly an estimated 115,000 individuals across Europe with 75,000 in the UK, France, and Germany alone. The report estimates that an additional 525,000 individuals are indirectly employed by the industry through related services such as fund distribution, advice and administration
12th edition
of our ‘Asset Management in Europe’ report.