Fund Buyer Index

European retail investor hotspots revealed

Posted in Sep 2019
by Joe McGrath

Retail investors are the dominant source of assets under management for fund managers in Spain, Romania, Hungary, Belgium, Bulgaria and Croatia, a new report confirms.

An analysis of figures at European fund groups, as at the end of 2017, by the European Fund and Asset Management Association (EFAMA), concluded that Spain continues to be predominantly a retail-dominated market, accounting for 84% of assets under management.

Romania was the next most retail-focussed market with 70% of assets from retail investor sources, followed by Hungary (65%), Belgium (36%), Bulgaria (40%) and Croatia (44%).

“This latest edition of EFAMA’s Asset Management report highlights the important role played by the European asset management industry in managing investments on behalf of European citizens,” said Tanguy van de Werve, director general of EFAMA.

“The observed continuing increase in the share of investment fund assets in the total assets managed in Europe confirms the success of UCITS as a global brand and the quality of the regulatory framework for the management of alternative investment funds (AIFs).”

In Portugal, France and Turkey, the figures were skewed towards institutional investors, according to the data. The Portuguese market has 76% of assets under management coming from institutional clients, followed by 73% in France and two third in Turkey.

Slovenia was the only European country to see an even split of assets between institutional and retail investors.

The report shows that money invested in equity funds climbed steadily from 2008, when the overall asset allocation towards shares was less than 30% to 2017 when it accounted for more than 42%.

By contrast, investments in cash and money market instruments have fallen dramatically since the credit crisis. The report shows that money in cash or money market funds stood at more than 20% in 2008, but this had fallen to around 8% by the end of 2017.

Director general Tanguy van de Werve was full of praise for the overall ecosystem which was created to support the operations of UCITS and Alternative Investment Funds on a cross-border basis, which he said had allowed investors to benefit from the best expertise available.

He said: “Ensuring the continued success of these investment vehicles should be a strategic goal for the new European Commission, and an integral part of the plan to create a well-functioning Capital Markets Union.”



Originally posted in Expert Investor

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