According to the European Fund and Asset Management Association’s (Efama) sixth annual review of the asset management industry, Europe ranks as the second largest market in the global asset management industry with 31% of AUM.
Efama’s estimate is total AUM in 2012 increased to €15.4trn or 108% in relation to GDP.
Back in 2007 assets in investment funds trumped those in discretionary mandates, with €6.9trn and €6.6trn in each respectively.
Then in 2008 discretionary mandates overtook investment funds but by a small margin, this continued through 2009 and 2010, until 2011 when DFMs could declare a decisive victory.
At the end of 2011 discretionary mandate assets stood 10% higher than at the end of 2007 and 32% higher than at the end of 2008.
Meanwhile, investment fund assets decreased by 7% during 2011 despite registering two years of strong growth in 2009 and 2010.
Investment fund assets remain below 2007 levels despite recording growth of 21% since the end of 2008, EFAMA added.
EFAMA said the fact discretionary mandates tend to be more risk averse than investment funds as they invest a higher proportion of assets into fixed income could be part of the reason for their growing popularity.
Another factor could be the fact they depend primarily on business-to-business relationships and so are influenced heavily by growth in the institutional client segment of the market.
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