New statistics from the European Fund and Asset Management Association (EFAMA) indicate that the value of asset under management (AUM) across the continent had risen again by the end of last year.
Published to EFAMA’s website, its information sheet of keys facts and figures indicates that AUM in Europe rose from €23trn in 2018, to €27trn in 2019, to €29trn in 2020, and then to €32trn in 2021. It then dipped to €28trn in 2022. However, those figures rose again to €30trn by the Q4 2023.
Perhaps not surprisingly, EFAMA also said that most investment funds (26%) were domiciled in Luxembourg, with the next-popular nation being Ireland (20%). Distantly behind those two were Germany (13%), France (11%), and the UK (9%).
EFAMA also said the asset management industry’s main clients were institutional, making up 70% of total funds. Of that, nearly a quarter (24%) of total assets across Europe were held by pension funds, with 22% held by insurance companies and 21% held by other institutional investors.
Elsewhere, the EFAMA found the cost of UCITS fell significantly between 2019 and 2023, from €9.6 as an annual cost for a €1,000 investment, to €8.4 for equity funds. Bond funds, on the other hand, saw a fall from €6.7 to €5.7 as an average annual cost for the same investment.
One of the biggest changes between 2022 and 2023 was that amount of EU funds that are now owned outside of the bloc. EFAMA calculated that this number has now reached €6trn, up from €4.4trn in 2022, and significantly above ethe €5.1trn reported in 2021.
In fact, the assets owned outside of the EU has tripled from €2trn in 2013 to the latest €6.tn figures. In 2013, just under 23% of funds were owned outside the EU; that proportion had increased by the end of last year to 30%.
