US Managers Win Sales Race in Europeans’ Back Yard

European fund houses are losing out to their American rivals on home turf, a study reveals.

(March 11, 2013) — Fund management giants from the United States have topped the European fund sales charts over the last 10 years, beating their nearest regional rival by an average €2 billion a year, research has shown.

Pimco, Franklin Templeton, and BlackRock sit atop the ranking of average annual sales to European investors over the last decade, according to figures from data monitor Lipper.

With average annual sales of €8.7 billion, €7.8 billion, and €7.8 billion respectively, these three US giants beat French insurer and asset manager Axa (encompassing Alliance Bernstein), which only brought in an average of €5.3 billion over the past 10 years, into fourth place.

Europeans Prudential/M&G, Carmignac, and Pictet follow next with €4.4 billion, €4 billion, and €3.9 billion respectively. BNY Mellon, Schroders, and Credit Suisse are next, followed by Europeans GAM Holding and Standard Life, followed by Canadian firm RBC.

“It is interesting that the 20 companies that feature in the best sellers list for the past decade are a real mix of business types, ranging across independent or ‘pure play’ asset managers, private banks, and the arms of banking groups,” the report from Lipper said. “In this context it is worth mentioning the other groups with a median annual sales total above €2bn, but with a lower average (mean), are Amundi, Aviva, HSBC, KBC and Union.”

The last two global investment banking giants to have retained significant asset management units were found in position 16 and 17 on the list. JP Morgan and Goldman Sachs had average annual sales in Europe of €2 billion and €1.8 billion respectively, the report showed.

Last year, sales across Europe totalled €230.4 billion for what Lipper consider to be “long-term” funds, the fifth best year for the industry over the last decade (behind 2005-06 and 2009-10). “However redemptions from money market funds totalled €44.5 billion over the year, and when these withdrawals are included the industry’s sales shrink to €185.9bn (only the seventh best total over the past ten years),” the report concluded.

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