Press Release - For immediate release
Assets under Management in Europe rose to new record high in 2016
EFAMA publishes the 9th edition of its Asset Management Report
Brussels, 24 May 2017: The European Fund and Asset Management Association (EFAMA) has today published the 9th Edition of its Asset Management Report. The report focuses on the value of assets managed by regulated third-party asset managers in Europe, providing detailed data on the location of the asset management activity, the asset owners, the evolution of the asset allocation, and the contribution of the industry in terms of employment. The report is primarily based on data received from 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:
• 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.
• 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).
• 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.
• 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 cash and money market instruments in asset managers’ portfolio has declined from 16% to 7%. On the other hand, there has been a rise from 10% to 19% in the share of other assets, such as real estate, hedge funds, structured products and private equity.
• 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.
• 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.
• 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.
Peter De Proft, Director General of EFAMA, comments:
“EFAMA’s Asset Management Report is a leading source of facts and figures about the European asset management industry. The total amount of assets managed in Europe (EUR 23 trillion) confirms the important role played by asset managers to fund new investment projects and generate returns for millions of savers and investors. I am confident that asset managers will continue to develop their role in the future as the Capital Markets Union project delivers on its goal of improving the access of European businesses to capital markets.”
– Ends –
** Please see the accompanying attachment
for the EFAMA Asset Management Report**
For media enquiries, please contact:
Peter De Proft, Director General
Bernard Delbecque, Senior Director for Economics and Research:
Telephone: +32 (0) 2 513 39 69;
Notes to editors:
About the EFAMA Annual Asset Management Report:
Seventeen associations provided us with data on the value of the assets managed in their countries: Austria, Belgium, Bulgaria, Czech Republic, Denmark, France, Germany, Greece, Hungary, Italy, Netherlands, Portugal, Romania, Slovenia, Switzerland, Turkey and the UK. According to our estimations, these countries account for 86% 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 28 member associations and 62 corporate members close to EUR 23 trillion in assets under management of which EUR 14.1 trillion managed by 58,400 investment funds at end 2016. Just over 30,600 of these funds were UCITS (Undertakings for Collective Investments in Transferable Securities) funds, with the remaining 27,800 funds composed of AIFs (Alternative Investment Funds). For more information about EFAMA, please visit www.efama.org