Europe’s top industry body for the fund and asset management sector is projecting an increase to 29,000 billion euro in assets under management in Europe for 2023. That compares to some 27,800 billion euro for 2022. The moderate rise for this year stems from a stronger capital markets environment, it said.
The Brussels-based European Fund and Asset Management Association, Efama, also noted that some 85 percent of Europe’s asset management activity takes place in six countries: the United Kingdom, France, Switzerland, Germany, the Netherlands and Italy. The association presented the data in its 2023 Asset Management Report.
Luxembourg, which prides itself in being the legal domicile to some 6,000 billion euro in fund assets, and Ireland, Europe’s second fund hub, are barely highlighted in Efama’s data, which is based on countries where asset managers are active. Efama noted that most global fund houses operate under a delegation model where key investment functions are not carried out in these countries.
Luxembourg domicile to one-fifth of European AuM
Luxembourg authorities, however, count the assets under management at the hundreds of domestic management companies that provide distribution and administration services to the global fund houses that are mostly based abroad. The assets under management of approximately 6,000 billion euro reported by Luxembourg’s supervisor CSSF imply that the Grand Duchy accounts for roughly about one fifth of European assets under management.
With assets under management of 9,923 billion euro, the United Kingdom accounted for 36.7 percent of European assets under management at the end of 2022. France, with 4,589 billion, held 16.5 percent of the European market, while Switzerland came in third with 2,852 billion, or 10.3 percent.
Germany took the fourth place in Europe in 2022 with 9.9 percent of total assets, or 2,748 billion euro, just ahead of the Netherlands, which accounted for 6.6 percent of the total with 1,841 billion. Belgium held the 9th position in Europe with 365 billion euro, or 1.3 percent of the total.
European assets under management
