EFAMA ANNUAL ASSET MANAGEMENT REPORT: THE INDUSTRY BELLWETHER
27 November 2020
EFAMA publishedthe 12th edition of its Asset Management Report*. The report aims to provide a unique and comprehensive set of facts and figures on the state of the industry at the end of 2018 but also to highlight the fundamental role of asset managers in the financial system and wider economy.
Tanguy van de Werve, Director General of EFAMA, stated: “This
year's edition of EFAMA's Asset Management Report sheds new light on
the key role played by the European asset management industry in
managing long-term savings and allocating financial resources across
industries on behalf of European citizens. In the wake of the global
pandemic, and with renewed European ambitions around sustainable finance
and the development of the Capital Markets Union, our industry will
continue to be a driving force for positive change, economic growth and
financial security."
Some of the key findings and observations include:
- Assets under Management (AuM) rose from EUR 10.8 trillion in 2008 to EUR 23.1 trillion at the end of 2018.
- 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.
- 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.
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.
- 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.
- 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.
Industry growth
- Assets under Management (AuM) rose from EUR 10.8 trillion in 2008 to EUR 23.1 trillion at the end of 2018.
- 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.
- 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.
Asset allocation and clients of the industry
- 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 the euro
area residents.
- 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.
“According to our estimations, total Assets under Management in Europe amounted to circa EUR 25.8 trillion at the end of 2019.
The Covid-19 pandemic led to a 11% decline of Assets under Management
during the first quarter of 2020. This was followed by a rebound of 8.3%
in the second quarter. Thanks to the positive news on the Covid-19
vaccine front, it is likely that the value of Assets under Management
will reach another historical height by the end of 2020", commented Bernard Delbecque, Senior Director for Economics and Research at EFAMA.
The full report is available 
here
*
The report is primarily based on data provided by eighteen EFAMA member
associations on the value of the assets managed at the end of 2018:
Austria, Belgium, Bulgaria, Croatia, Denmark, France, Germany, Greece,
Hungary, Italy, Netherlands, Poland, Portugal, Slovenia, Switzerland,
Spain, Turkey and the United Kingdom. Additional internal and external
data have been used to estimate the assets managed in the other European
countries.
The report also provides an estimation of the Assets under Management in Europe at the end of December 2019 and June 2020.
© EFAMA - European Fund and Asset Management Association
