The level of assets under management (AUM) in Europe underwent steady growth from 2011 to 2022, despite a slight decrease from the previous peak experienced in 2021. The total amount of assets under management (AUM) in Europe amounted to 28.4 trillion euros by the third quarter of 2022. The level of AUM has contributed significantly to the total level of financial assets in Europe. If an asset is not included in a managed system, it is considered to be an unmanaged asset. These are assets that are not managed by advisors. They are, however, still included in financial reporting. Managed assets are often overseen by an asset management firm; both retail and institutional clients may use third-party firms to oversee their assets. Institutional investors such as banks, mutual funds, or insurer firms in Europe may choose to manage their assets in-house.
European investors
In Europe, institutional clients accounted for over 70 percent of the total AUM. Institutional investors are large organizations that invest pooled funds on behalf of individuals. Due to this, institutional investors buy and sell in block trades. This larger scale of investment leads to institutional investors accounting for the majority of the market. Retail clients are individuals investing with their own money, typically in round lot amounts (the standard minimum number of securities traded on a specific exchange). The majority of investors of AUM in Europe have been allocated to bonds or equity securities. In recent years, the share of foreign investors accounting for AUM in Europe has increased. The majority of Europe’s total AUM as of 2021, however, was primarily derived from domestic investors.
Asset management firms
The total expenses of third-party asset managers in Western Europe have steadily increased in recent years. This increased expenditure may have been reflective of business growth as the level of AUM in Europe has roughly doubled in value since 2011. Employment in the asset management industry was strong as the number of people directly employed by asset management firms in Europe rested at 120,000 as of 2021. To continue further expansion, industry professionals in Europe projected the most important actions required for future firm revenue growth were client retention and product innovation.
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