Is the German Asset Management Biz Getting a Brexit Boost?

31 Jan

Is the German Asset Management Biz Getting a Brexit Boost?

German domiciled investment management firms reporting to eVestment have seen assets under management (AUM) swell to more than €1.6 trillion ($1.9 trillion) in 2017 in the past 10 years. And interest in German asset management firms and their products from institutional investors and consultants using eVestment spiked following the Brexit vote in the summer of 2016.

These are two key findings of eVestment’s recently released Germany Country Report, which shows the German asset management business potentially getting a boost from Brexit.

eVestment collects data from nearly 60 asset managers in Germany and more than 4,100 asset managers from around the world to help the institutional investing community identify and capitalize on global investment trends, better select and monitor investment managers and more successfully enable asset managers to market their funds worldwide. eVestment’s new Germany report is based on that data and looks at trends related to Germany and in comparison to other European countries.

A few other interesting points from the report:

  • Views of eVestment of German-domiciled firms’ products jumped nearly 50% in the weeks leading up to and following the Brexit vote, highlighting global investors’ potential interest in exploring German investment firms and products following that event.
  • Germany is home to the third largest concentration of institutional asset managers in continental Europe, behind Switzerland and France.
  • Germany is the dominant balanced/multi-asset product provider in continental Europe and there appears to be significant opportunity to expand and compete for UK-based investor assets within that category.
  • Products from Germany’s largest universes have done relatively well raising capital in 2017 through the third quarter, the latest data available. Cumulative flows from each of their five largest product universes have been positive, even when the overall universes themselves have not been positive.

To receive a full copy of this report, please click here.