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That was the message of Christian Dargnat, President of the European Fund and Asset Management Association (EFAMA), at the association’s Annual General Meeting (AGM) held in Bucharest. Discussion focused on the scale of regulatory initiatives emerging from the EU and the rest of the world such as PRIPS, MiFID, UCITS V, and the impact of implementation. However, the overall future outlook for the industry is positive with Mr Dargnat noting that despite the temporary setback in the long-term growth of assets managed by the industry generated by the financial crisis, various studies now predict a rise to about $100 trillion by 2020, equivalent to a compound growth rate of nearly six per cent in the coming years.
Mr Dargnat noted that global wealth is increasing and will lead to further investment. Even if emerging markets catch the larger part of this growth, Europe will see average growth of three per cent in the coming years. Asset growth is returning but it will be invested differently. Investors’ expectations have changed and they have new needs that must be met. The continued fast growth of low cost beta and alternative solutions confirms a structural shift in the market. The increased popularity of these asset classes will probably continue.
Particularly in the wake of the upheaval across the European institutions, the members reconfirmed the importance of transparency, open debate and engagement with the policy agenda to ensure representation of all industry perspectives and ultimately, to secure investor protection. Alongside this, the opportunities arising from regulation were noted as changes in investor behaviour become more widespread. Mr Dargnat also highlighted the key priorities for EFAMA for the year ahead, including providing a strong united voice across the industry, offering viable solutions to the issue of long term investment, supporting the asset management industry in its role in financing the economy and safeguarding the end investor.