EUROPE - Total assets managed in Europe bounced back to €13.8trn ($19.8trn)at the end of 2010, research from the European Fund and Asset Management Association (EFAMA) shows.
The association's fourth annual review, Asset Management in Europe: Facts and Figures, said the figure was up from €12.4trn at the end of 2009 and €10.9trn at the end of 2008.
It said the sustained economic recovery in 2010, the general market appreciation and strong investor demand for long-term investment funds were the main drivers behind the increase of total assets under management. In relation to GDP, total AUM is estimated to have reached 103% at end 2010 from 97% at end 2009 and 81% at end 2008.
Institutional clients account for 68% of AUM, with retail investors making up the remaining 32%. The high share of institutional clients reflects their importance in the UK, where they account for 77% of total AUM, compared to 64% in France, 62% in Germany and 51% in Italy, EFAMA said.
The UK, France and Germany accounted for 65% of total asset at the end of 2009, the report found. The UK is the largest country in terms of discretionary mandates with AUM of €2.6trn at end 2009, whereas France is the largest country in terms of investments fund AuM (€1.5trn at the end of 2009).
The dominant asset classes managed in Europe are bond and equity, with 44% and 32% of total AUM at end 2009, respectively. Thanks to the stock market recovery in 2009, the share of equity rebounded strongly from the lows reached in the midst of the global financial crisis (27% at end 2008), whereas bonds and money market instruments saw their share in the asset allocation decline in 2009.
EFAMA director general Peter De Proft said: "This new EFAMA report provides for the first time hard figures about the key role played by European asset managers in helping governments, corporations and banks meet their short-term funding needs and long-term capital requirement.
"Even if the figures are estimations, their order of magnitude confirms the essential contribution of European asset managers to the overall development of the European economy".
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