New report shows that European asset management shifted towards retail and foreign clients, passive investing, and equity markets
The European Fund and Asset Management Association (EFAMA) has today published the 17th edition of its Asset Management in Europe report, which provides in-depth analysis of recent trends in the European asset management industry.
Key findings of the report include:
European asset under management (AuM) grew almost 12% in 2024 – AuM reached a record EUR 33 trillion in 2024, driven mainly by strong equity market performance, while bond price growth was more muted. We estimate that AuM in Europe reached EUR 34.4 trillion at the end of September 2025.
Assets were highly concentrated in 6 European countries – Asset management activity is concentrated in six countries, which are responsible for nearly 85% of the asset management activity that takes place in Europe. The United Kingdom is the largest asset management hub, followed by France, Switzerland, Germany, the Netherlands and Italy.
Fund assets expanded more than mandates – From about half of total AuM in 2014, investment funds’ share has risen steadily over the past decade, driven by their higher equity exposure versus discretionary mandates and broadly rising global stock markets. In 2024, this pattern continued - equity markets posted strong gains while bond prices showed minimal growth.
Asset managers played a significant role in financing the European economy – Asset managers held around EUR 6.8 trillion in EU-issued debt securities and EUR 2.9 trillion in EU-issued listed shares at the end of 2024. This represented 28% of all debt securities and 24% of listed shares issued by EU-resident companies and other issuers.
Share of retail clients increased steadily – The share of retail clients in total AuM rose from 26% in 2020 to 32% at the end of 2024. This reflects a growing interest among European retail investors for capital market investments. Exchange-traded funds (ETFs) have emerged as a preferred investment vehicle for households seeking cost-effective and diversified fund exposure.
Asset allocation shifted towards equity – The share of equities in the portfolios of European asset managers shot up in 2024, driven by the double-digit gains of most stock indices. Market shares of bonds and cash/money market holdings remained broadly stable, but AuM still grew thanks to strong fund inflows. By contrast, the share of ‘other’ assets declined markedly due to a slowdown in private market growth, the reduction of UK LDI strategies, and improved data reporting.
Passive investing continued its inexorable rise – The share of passive funds has risen strongly in recent years. This shift accelerated markedly in 2023 and continued unabated throughout 2024, supported by the rapid growth of passive, index-tracking ETFs. The key drivers behind this evolution are lower costs, liquidity and ease of access.
Industry profit margins recovered slightly – Operating profit margins in the asset management industry dropped sharply in 2022 and 2023 due to persistent fee pressure and rising costs, particularly for technology. Profit margins improved slightly in 2024, as revenue remained stable while costs decreased somewhat.
With perspectives by McKinsey, Oliver Wyman and Novantigo, this report also addresses the following three questions:
What role can agentic AI play in asset management?
How is private wealth being allocated to private assets?
What is fuelling the M&A race in asset management?
EFAMA’s Senior Economist, Thomas Tilley, commented: “European AuM reached record levels in 2024, driven primarily by strong equity markets. Growth appears set to continue through 2025, albeit at a more moderate pace due to tariff disruptions, the appreciation of the euro against the dollar and flat bond prices. Meanwhile, several structural trends continue to reshape the industry: the expanding role of investment funds versus mandates, growth in retail investors, deeper cross-border integration and the relentless rise of passive investing.”
EFAMA’s Director General, Tanguy van de Werve added: “The steady rise in the share of retail clients is an encouraging development. To sustain and accelerate this trend, EFAMA advocates three key enablers that will further increase retail participation: improved financial literacy, well-designed tax incentives, and a simpler investor journey. While the recent financial literacy strategy and savings and investment account blueprint from the European Commission are important steps forward, it is essential that the ongoing negotiations on the Retail Investment Strategy lead to a significant simplification of the current, overly complicated investor journey.”
- ENDS -
Notes to Editors
Graphs and country-specific data are available for reproduction.
For further information, please contact:
Hayley McEwen
Head of Communications & Membership Development
About the Asset Management Report
The EFAMA Asset Management in Europe report provides a precise picture of the European asset management industry, focusing on the countries where assets are managed. This perspective is distinct from most other EFAMA reports, such as the Fact Book, the monthly Fact Sheets, or the quarterly statistical releases, which analyse trends in the European investment fund market from the standpoint of the countries in which funds are domiciled or owned.
The report is primarily based on data provided by 19 national associations: Austria, Belgium, Croatia, Czech Republic, Denmark, France, Germany, Greece, Hungary, Italy, the Netherlands, Poland, Portugal, Slovakia, Slovenia, Switzerland, Spain, Turkey and the United Kingdom. Additional internal and external data have been used to estimate the assets managed in other European countries.
