Europe Asset Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)
Europe Asset Management Market is expected to achieve a CAGR of 5% during the forecast period. During COVID-19, the European asset management industry saw unprecedented growth in 2020, despite the sharp fall in financial markets in the initial months. Due to a robust market bounce at the end of the year, the asset management industry witnessed a growth from the previous year, 2019.
Asset management in Europe is primarily concentrated in six nations (United Kingdom, France, Germany, Switzerland, Netherlands, and Italy), which account for around 85% of the asset management industry in Europe.
Domestic clients constitute most of the European asset management industry's client base, with a 69% market share, whereas foreign clients are growing substantially in recent years (from 26% in 2017 to 33% in 2021).
Europe Asset Management Market TrendsSustainable Investing Will be a Key Driver of Risk and Return in the Financial IndustryEnvironmental, social, and governance (ESG) factors are integrated into the investment processes in sustainable investing. In Europe, the demand for sustainable investing has been rising with solid growth in recent times. By the end of the first quarter of 2021, asset directors had enforced an ESG investment strategy to an aggregate of USD11.98 trillion in means. Around 55 of these means (USD 6.55 trillion) are handled through investment finances, with the rest USD 5.45 trillion managed through optional authorizations. In the last 10 times, the request for sustainable ESG Bonds, whose earnings are only intended for backing or re-financing green and social programs, has grown exponentially to USD 1.22 trillion in the first half of 2021. The financial policy response to the COVID-19 outbreak redounded in a huge swell in the issue of green bonds, which enhanced the request's liquidity and depth, making it more charming to investors.Over the former five times, the entire issue volume of sustainable bonds in Europe surged 18-fold, from USD 34 billion at the end of 2016 to USD 518 billion by the end of 2020. The COVID-19 problem boosted this development in 2021, enabling the means of sustainable bonds to rise to USD 770 billion in the first ten months. Commercial issuers regard for half of all European sustainable bond issuers, followed by governmental/supranational associations with a 30 share.
Increased Market Volatility has Accelerated the Shifts in Product and Asset-Class MixIn 2020, active administration strategies called for 80% of European assiduity AUM and captured 32% of net incomes. As opposed to previous heads, where investors disproportionately pulled means from equities, this time, investors shifted their finances to the plutocrat request and active equity products, counting for 37% of total net new overflows, over from 16% in 2019. An aggregate of USD 261 billion flowed into plutocrat request finances over the full time or 31% of total net overflows( T2). After two times of constant exoduses, retail investors returned to positive net overflows into active equity strategies in 2020. As a result of Europe's prolonged probative financial policy and the instigation of rising requests, equity fund exoduses of the first quarter more than neutralize the demand for equity finances latterly in the time. At the same time, traditional safe-haven asset classes similar to active fixed income saw lower situations of net inrushes than in 2019, substantially the result of exoduses realized in the first quarter.
Europe Asset Management Industry OverviewThe European asset management market is highly competitive, with the presence of major international players. The market presents opportunities for growth during the forecast period, which is expected to further drive the market competition. With multiple domestic players holding significant shares, the market is competitive. Key Players in the European Asset Management Market are UBS Grou, Allianz Group, and Amundi Asset management.
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