TAKING THE REINS

Introduction

Figure 1

Breakdown of total European AuM, by type of investors, end 2010

Institutional investors form the significant majority of assets in the investment industry and have increased their allocation in recent years in spite of the hardships of recent market crisis, as suchmaintaining their trust is integral to the future success of asset managers. As of end 2007, institutional investors accounted for 65% of total European assets, this market share has since increased to 69%; despite what might be viewed as an incremental change, the volume of assets institutional investors now hold exceeds €12 trillion. With the assets institutional investors hold, asset managers must be diligent in providing an attractive proposition as they will form the backbone of their survival by supplying the majority of their assets. The investment protocol of institutional investors will set the path down which assets are invested as a result of the search for diversification and risk-returns. Achieving as well as exceeding the requirements of institutional investors is consequently an important factor for future growth; therefore PwC and CACEIS have conducted a survey to identify the areas in which asset managers must capitalise and improve upon to ensure success with instititutional investors.

27%

Pension funds

Insurance companies Other Institutionals

Retail 31%

Institutional 69%

42%

31%

Source : EFAMA

Figure 2

Breakdown of participants by country (%of total assets in our sample)

Luxembourg 0.8% Others* 1.0% Belgium 0.5% Portugal 0.7%

Italy 2.3%

Sweden 4.4%

United Kingdom 33.0%

Spain 1.7% Ireland 2.3%

Germany 4.8%

France 12.0%

Switzerland 12.4%

Netherlands 24.1%

Source : PwC-CACEIS survey 2012 * Others include: Austria, Bulgaria, Croatia, Estonia, Finland, Hungary, Iceland, Norway, Romania

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