EUROPE - Total assets managed in Europe grew by €2trn (US$2.6) to €12.8trn in 2009, estimates from European Fund and Asset Management Association (EFAMA) revealed.
EFAMA said last year's stock market rally and the recovery of net inflows into UCITS were the main drivers behind the increase of total assets under management.
In addition, the association published its third annual review Asset Management in Europe: Facts and Figures based on answers to questionnaires collected at the beginning of 2009 and which refer to the situation at the end of 2008.
Institutional investors accounted for 66% of total assets under management at the end of 2008.
EFAMA said the high share of institutional clients reflects their importance in the UK, where they account for 79% of total assets under management (AUM), compared to 62% in France, 60% in Germany and 46% in Italy.
The UK, France and Germany accounted for 66% of total AUM at end of 2008, which equals to €7.2trn. The UK is the largest country in terms of asset managed under discretionary mandates (€2.2trn at end 2008), whereas France is the largest country in terms of assets managed through investment funds (€1.4trn at end 2008).
Equities accounted for only 27% of total assets under management at end 2008, compared to 37% at end 2007. EFAMA said: "The financial crisis and the substantial falls in equity values in 2008 explained the substantial movements out of equities into bonds and money market instruments. With the recovery of the stock markets since April 2009, the relative proportion of equities must now be somewhere around 33%."
The Centre for Social Justice is calling for the state pension age to be raised to 70 by 2028 and to 75 by 2035, a much faster rise than currently planned.
The High Court has blocked the £12bn transfer of Prudential's annuity book to Rothesay Life, citing the insurer's lack of "established reputation" and differing "capital management policies".
This week's top stories included Legal & General acquiring MyFutureNow to provide a dashboard service to customers, while also agreeing a hybrid buy-in with a Hitachi scheme.