For immediate release
EFAMA Annual Report Outlines Unique and Essential Role of Asset Managers
Brussels, 9th July 2014: The European Fund and Asset Management Association (EFAMA) has published its Seventh Annual Review of the asset management industry in Europe. The report focuses on the value of assets managed by third-party asset managers in Europe, with a distinction between investment funds and discretionary mandate assets, across both the retail and institutional landscape. The report is primarily based on questionnaire responses by EFAMA member associations covering data at end 2012. It also provides an estimation of the total assets under management (AuM) at end 2013.
The report outlines the vital role of the asset management industry, its key functions, specificities compared within the wider financial system, and its contribution to the financing of the economy. The report also explains why asset managers are characterised by a business model that is fundamentally different than that of other financial services firms.
This year’s review highlights include the following key figures:
• Total AuM in Europe increased by approximately 9% in 2013 to EUR 16.8 trillion. In relation to GDP, the value of AuM is estimated to have reached 115% at end 2013, up from 108% in 2012. This growth was driven by net flows and market movements, on the back of improved financial market conditions and renewed investor confidence.
• Europe ranks as the second largest market in the global asset management industry, managing 33% of the EUR 47 trillion global asset management industry at end 2012.
• In Europe, discretionary mandates represented EUR 8 trillion or 52% of total AuM at end 2012, while the share of investment fund assets in total AuM stood at 48% and amounted to EUR 7.4 trillion at year end. Both investment fund and discretionary mandate assets stood at record high levels at end 2012.
• Bond assets dominate asset managers’ asset allocation choice, with a share of 46% of all assets at end 2012. Equity assets accounted for 29% of assets, whilst money market and cash equivalents represented 10% of assets
• More than 3,200 asset management companies are registered in Europe employing about 95,000 people directly and over 435,000 indirectly at end 2012, thus bringing total employment to 530,000.
• Institutional investors, acting on behalf of millions of households, represent the largest client category of the European asset management industry, accounting for 74% of total AuM in Europe. Insurance companies and pension funds accounted for 42% and 32% of total AuM for institutional clients at end 2012, respectively.
• European asset managers held 23% of the debt securities issued by euro area sectors at end 2012, and 31% of shares and other equity issued by euro area companies. These figures highlight the role played by asset managers in the financing of Europe’s economy.
Peter De Proft, Director General of EFAMA, comments:
“The data presented in EFAMA’s Seventh Annual Review of Asset Management in Europe demonstrates the strength of the industry and the central role it plays in the wider economy. We look forward to continuing to provide comprehensive support to our members in order to ensure the ongoing growth of the asset management sector across Europe.”
- Ends –
** Please see the accompanying attachment
for the EFAMA Asset Management Report**
For media enquiries, please contact:
Peter De Proft, Director General, or Bernard Delbecque, Director of Economics and Research:
Telephone: +32 (0) 2 513 39 69;
Notes to editors:
About the EFAMA Annual Asset Management Report:
Thirteen associations provided us with data on the value of the assets managed in their countries: Austria, Belgium, Bulgaria, France, Germany, Greece, Hungary, Italy, Netherlands, Portugal, Romania, Turkey and the UK. According to our estimations, these countries account for 76% of the AuM in Europe. To compensate for those associations unable to answer the questionnaire or those who can only provide partial information, additional internal and external data were used to estimate the value of total AuM in Europe
About the European Fund and Asset Management Association (EFAMA):
EFAMA is the representative association for the European investment management industry. EFAMA represents through its 27 member associations and 62 corporate members about EUR 17 trillion in assets under management of which EUR 9.8 trillion managed by over 55,000 investment funds at end December 2013. Just over 35,600 of these funds were UCITS (Undertakings for Collective Investments in Transferable Securities) funds. For more information about EFAMA, please visit www.efama.org