Third party marketing European Union
third party marketing European Union: International asset managers should not miss the opportunities the EU investment fund market presents. By the end of 2024, the market will exceed total assets under management (AUM) in UCITS and AIFs of €15 tn. This makes the EU a prime market for managers targeting retail and institutional investors. UCITS funds, known for their stringent regulatory standards and cross-border opportunities, represent around €10 tn, while AIFs, which target more professional and institutional investors, hold approximately €5 tn.
Within the UCITS segment, equity funds are particularly significant, managing nearly €4 tn in assets, driven by the demand for diversified global equity exposure. Bond funds hold about €3 tn, appealing to conservative investors seeking stable returns. Multi-asset funds, managing approximately €2 tn, attract investors looking for balanced portfolios across asset classes. With this wide range of fund types in the EU, international managers can tailor their offerings to specific markets.
Market Structure and Investor Segments
It is important to understand the diversity of the EU investment fund market. There is a variety of countries with different investors’ preferences and needs, as well as different investor segments, including:
Institutional Investors: These include pension funds, insurance companies, and large foundations, which are significant players in AIF investments. They seek long-term investment opportunities, especially in infrastructure and real estate, which provide steady returns and diversification benefits.
Retail Investors: The retail market is primarily accessed through UCITS, thanks to their high level of investor protection and transparency. Retail investors often favour equity and balanced funds distributed through banks, financial advisors, and online platforms.