CACEIS NEWS 37

8 caceis news - No. 37 - March 2014

Worldwide

Europe

Country Focus - France

Luxembourg Focus in the next Caceis news

Source: EFAMA - January 2014

Source: EFAMA - March 2014

Total assets under management (AUM) in France (€ billion)

Net assets of the European Fund industry Q4 2013 (€ billion) The combined assets of the investment fund market in Europe, i.e. the market for UCITS and non-UCITS, increased by 3.2% during the last quarter of 2013 and reach a rise of 8.9% in 2013 to stand at €9,788 billion.

Worldwide Investment Fund Assets Q3 2013 (€ trillion) Investment fund assets worldwide increased 3.5% during the third quarter to stand at EUR 23.37 trillion at end September 2013.

Funds and discretionary mandates posted asset growth of 3.1% last year. Assets under management across the industry rose to some €3 trillion at the end of 2013 including assets held in discretionary mandates and foreign-domiciled funds. French-law funds increased by 1.2%, while foreign-law funds that are managed in France reported strong growth, seeing their asset pool jump by 5.2%.

French funds Mandates (inc. foreign funds)

1,523 3,023 +3.1%

1,506 2,932 +5.9%

1,514 2,917 +4.2% 2,768 -5.1%

2,800 +11.6%

1,594 2,779 +4.6% 2,509 -9.7%

1,544 2,658 +13%

23.78 22.94 23.37

1,523

1,329 2,354 +13%

19.97 20.85 21.42 21.95 22.17

1,387

1,164 2,087 +16%

1,384

Country Austria Belgium Bulgaria

€bn 150

Share

1,798 +7%

1,016 1,686 +15%

1.5% 1.0%

1,473 +4%

1,050

95

1,500

888

1,426

1,403

1,381

0 5

- -

1,277

1,185

1,125

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

1,114

1,025

Czech Republic

2011

2012

2013

923

748

670

Denmark

186

1.9% 0.8%

585

Total net assets Type Split - Q3 2013

Finland France

75

1,525 1,405

15.6% 14.3%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Equity

39%

Germany

Source: AMF and AFG estimates for end 2011 for mandates and foreign funds, FCPEs, FCPRs and OPCIs.

Money Market

15%

Greece

7

0.1% 0.2%

Hungary

16

Bond

23%

AUM by French fund category

Ireland

1,344

13.7%

Balanced

11%

Italy

209

2.1% 0.3%

Net assets (€billion)

Variation 2013

Liechtenstein Luxembourg

31

Other

12%

2,615

26.7%

€bn

%

31/12/12 31/12/13

Malta

9

0.1% 0.9% 0.8% 0.5% 0.3%

Equity

234.1 269.0 248.1 265.6 14.3 12.4 47.3 42.8 209.0 204.1

34.9 14.9% 17.5 7.1% -1.9 -13.3% -4.5 -9.5% -4.9 -2.3%

Trends by investment type Q2 2013 (€ trillion)

Netherlands

73 79 45 25

Balanced

Norway Poland Portugal Romania Slovakia Slovenia

FAIF

Equity fund assets worldwide increased 5.8% during the third quarter to €9.2 trillion as well as net assets of balanced/mixed funds 1.9% to stand at €2.6 trillion. Net assets of money market funds recorded a slight increase of 1.1% during the quarter to €3.5 trillion. Over the same period net assets of bond funds fell 2.18% to stand at €5.3 trillion.

Structured

Equity and diversified funds benefited from last year’s stock market rally with an increase of respectively 14.9% and 7.1%. Money market funds decreased of 13.31% and bond funds by 2.3%.

Bonds

4 4 2

- - -

Money market

363.7 315.9 -47.8 -13.31%

Others (FCPE, FCPR, FCIMT)

389.5 413.6

24.1 6.2% 17.4 1.2 %

1,506.0 1,523.4

TOTAL

Spain

185 200 357

2.0% 2.0% 3.7% 0.2%

Source: AMF and AFG estimates for “Other“ FAIF: Funds of alternative investment funds

Sweden

Money Market Bonds Balanced

Equity

Switzerland

10

Turkey

21

Sweden 2.6%

Luxembourg 0.6% Ireland 0.3%

United Kingdom

1,121 9,788 6,866 2,922

11.3%

Fund Management in Europe Based on the countries in which the financial management of investment funds is actually performed, France is now third with a 18.1% market share, following the UK (19.6%) and Germany (18.8%).

Italy 4.5%

8

Total UCITS

100.0%

Spain 1.8%

Belgium 2.3%

70.1% 29.9%

6

Non-UCITS

Switzerland 7.6%

France 18.1%

4

European trends in assets by UCITS type Q42013 (€ billion)

2

USA 13.4%

Germany 18.8%

0

Equity funds increased of 5.8% to stand at €2,531 billion at quarter end. Bond fund net assets rose 1.0% or €20 billion to €1,942 billion. Net assets of balanced funds increased 4.5% during the quarter to €1,113 billion. In contrast, money market fund net assets reduced 2.3% during the quarter to €912 billion.

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

2011

2012

2013

Others 10.5%

Net Sales of Investment Funds Q3 2013 (€ billion)

United Kingdom 19.6%

Source: EFAMA, AFG, CSSF, IFIA

Investment funds worldwide registered net inflows amounting to €182 billion in the third quarter, up from €109 billion in the second quarter.

Money market Bonds Balanced Other (incl.FoF)

Equity

Fund domiciliation in Europe

2,800

26.6%

2,400

369

320

2,000

In terms of fund domiciliation Luxembourg remains the European leader with a 26.6% market share, followed by France ranked second (15.8%), Germany (14.3%) and Ireland (13.8%) of the European fund market.

15.8% 14.3% 13.8%

11.2%

193

1,600

182

167

102 147

109

99

99

83

1,200

2.1% 1.8%

800

Q3 Q4 -104

Italy

Q2

Q3 Q4

2013 Q1 Q2 Q3

Q2

Q1

Spain

400

France

Ireland

2011

2012

Germany

Luxembourg

0

United Kingdom

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Source: AFG/EFAMA/ICI

2012

2013

Split by region of UCITS distribution Q3 2013

Number of asset management companies (units)

Net Sales of UCITS Q4 2013 (€ billion)

Others 2.6%

0 100 200 300 400 500 600 700 800 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20 30 40 50 60 Number of Asset management companies Number of company formations

Brazil 5 . 1%

Net sales of UCITS totaled €51 billion in the last quarter of 2013 to reach €229 billion in 2013 the highest level since 2006.

Australia 5 . 2%

The number of asset management companies in France rose last year, with 38 new firms being created. At the end of 2013, there were 613 fund firms in the country, compared with 604 at the end of 2012.

USA 50 . 1%

132

95

78

Europe 28.6%

51

34

20

12

8

China 1 . 3%

Canada 3.7%

Japan 3.4%

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Source: AMF

2012

2013