Total investment fund assets held by European investors reached €11.7 trillion in 2017, according to the European Fund and Asset Management Association (EFAMA).
The three main categories of investors included households, insurance companies and pension funds, and other financial intermediaries, which held 90 percent of total investment fund assets.
Insurers and pension funds, for their part, remained the largest holders of European investment funds in 2017 with a share of 41.7 percent.
Over the last years, the share of cross-border funds grew steadily, from 25 percent in 2008 to 32 percent in 2017.
EFAMA stated this evolution was driven, at least partly, by more coherent rules for the cross-border distribution of funds provided by single market initiatives such as the Markets in Financial Instruments Directive and the UCITS and alternative investment fund management frameworks.
The findings of this report also show the state of penetration rate of investment funds and other retail investment products in the asset allocation of European investors.
EFAMA said they are particularly relevant in view of the European Commission’s efforts to strengthen the capacity of EU capital markets and foster retail investment under its Capital Market Union (CMU) project.
Tanguy van de Werve, director general at EFAMA, said: “The increase in cross-border fund ownership in Europe over the past decade is a welcome development. We expect this trend to continue in the future, driven by technology-enabled access to a larger pool of foreign fund providers.”
He added: “The European Commission’s proposal on facilitating the cross-border distribution of funds, on which we anticipate trilogue approval at any time, will enable consumers to benefit from greater choice at a lower cost, thereby further unlocking the benefits of the CMU.”
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