EFAMA publishes annual asset management report
10 July 2008

Written by Sophie Baker

The European Fund and Asset Management Association (EFAMA) has published a report providing a comprehensive overview of the European asset management industry across the investment funds and discretionary mandates landscape.

The report focuses on the size of the industry, the location of the activity of asset management, the industry’s clients and the asset allocation at the end of 2006. The report found that, at the end of 2006, the European asset management industry managed €13.5trn assets, with investment funds and discretionary mandates representing on average 53 per cent and 47 per cent of total assets under management (AUM) respectively.

The UK, France and Germany together accounted for more than 65 per cent of total AUM in Europe. Italy and Belgium followed in this ranking. It was also found that institutional investors represent the largest client category of the European asset management industry, accounting for 66 per cent of the total AUM on average, compared to 34 per cent for retail clients, at the end of 2006.

Although there were variations across countries, on aggregate the dominant asset classes were bond and equity, with 40 per cent and 39 per cent of total AUM respectively.

Mathias Bauer, president of EFAMA, commented: “The new report published by EFAMA confirms the vital role played by the European asset management industry in servicing investor needs in terms of risk diversification and asset allocation. The industry also contributes to significant employment along the wide value chain associated with asset management, in particular in the area of distribution, accounting, auditing, order processing and research. This is why EFAMA spends so much time and energy on advising the European Commission and regulators on regulatory changes that offer the potential to increase the competitiveness of the industry further in terms of cost and quality and, thereby, secure the position of Europe as a global asset management centre.”