Europe Mutual Fund Industry - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Europe Mutual Fund Industry - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

In Europe, the mutual funds called investment funds (UCITS, AIFs, PEFs) are defined by the regulation as a collective investment undertaking that invests capital collected from the public into financial (equity, debt, money market funds) or non-financial assets (real estate funds, commodity funds). UCITS Directive regulates the industry along with two other regulations for alternative investment funds and European Venture Capital funds. Apart from these three regulatory bodies applicable to the entire region, country-level regulatory bodies are also present.

In Europe, UCITS funds have the flexibility to invest in any country in the region once registered in any one member country. Debt securities are preferred in the region that equity securities funds.

The net assets of UCITS and AIFs declined by 11.6% to EUR 15.68 trillion as of Q1 2020. The sharp fall is largely due to the turmoil caused by the COVID-19 outbreak and the net outflows from funds are also an explanation for the sharp fall.

Key Market TrendsEuropean Investment Funds Saw Net Outflows

UCITS (Undertakings For Collective Investment in Transferrable Securities) and AIFs (Alternative Investment Funds) registered net outflows of EUR 125 billion in Q1 2020, a level not seen since the global financial crisis. Net outflows of UCITS amounted to EUR 176 billion, compared to net outflows of EUR 142 billion in Q4 2008.

Net sales of AIFs on the other hand remained positive and even increased to EUR 51 billion in Q1 2020, from EUR 42 billion in Q4 2019. These inflows indicated that some institutional investors, the main buyers of AIFs, do not hesitate to increase their AIF purchases in stressed market conditions.

Fund Wise Segmentation of AuM

After registering positive net sales in January and February, the market stress caused by the Covid-19 pandemic resulted in many investors redeeming their shares/units for fear of making losses.

Bond and equity funds (UCITS and AIFs combined) recorded net outflows: EUR 82 billion and EUR 52 billion, respectively, in Q1 2020. Money market funds recorded net outflows of only EUR 0.1 billion in first quarter this year, despite significant net outflows in March. The large net inflows observed in January (EUR 48 billion) explained this outcome.

Competitive Landscape

The report includes an overview of MF companies operating across Europe. We wish to present detailed profiling of a few major companies which cover product offerings, regulations governing them, their headquarters, and financial performance. Currently, some of the major players dominating the market are listed below.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
BlackRock
Amundi
BNP Paribas Asset Management
JP Morgan
Natixis
AXA
UBS
HSBC
DWS Group
PIMCO
Invesco*

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