Fiduciary managers see significant increase in assets IPE survey


Nov 18, 2013 (4 years and 7 months ago)


Fiduciary managers see significant increase in assets

IPE survey

8 October 2012


Nearly two
dozen European fiduciary managers have seen a €110bn increase in assets under management
(AUM) over the last year, according to an annual industry survey

conducted by IPE.

Dutch asset manager APG

responsible for the assets of the civil service pension fund, the €261bn ABP

remained the largest fiduciary manager, with €300bn in AUM at the end of the second quarter, claiming 28% of
surveyed assets due to
a €26bn year
year increase.

Significant increases in assets under management were also seen by MEAG

responsible for insurance assets
from Munich Re, ERGO and third
party clients

reporting a €20bn year
year increase to €202bn.

PGGM Investments cla
imed €123bn in overall assets compared with €106bn the previous June.

Combined, the three largest players dominated the European market, accounting for 57% of surveyed assets.

© IPE Research 2012

In total, companies surveyed both last July and this year saw assets increase by nearly 12% to €979bn.

Six new respondents, including consultancy Towers Watson and DB Advisors, were further responsible for a
combined AUM of €106bn, bringing the total to ne
arly €1.1trn.

Mercer has seen its fiduciary management business nearly double over the past year but still remains one of the
smaller providers in the European market.

Despite seeing assets at the end of July increase from €6.8bn to €11.5bn

mainly due to

27 new clients in the UK
over the period and an additional 20 from other European countries

the consultancy was second
last in the
ranking of 20 companies.

The Dutch market remained important for other leading providers, with Mn, Syntrus Achmea, ING
Management Europe and Robeco Group rounding out the Top 10, as well as Belgium's Dexia, BlackRock and
Towers Watson.

© IPE Research 2012

Ranking tenth, Robeco Group was able to nearly double its AUM since June last year to €20.5bn, recording
nflows of €12bn from its single mandate award over the period.

The boost to business likely stems from Dutch scheme Vervoer's decision to appoint the company as its manager.

Vervoer sacked Goldman Sachs Asset Management as its previous fiduciary manager an
d is currently suing the
company in the UK High Court.

Towers Watson was also able to see its business grow by eight mandates worth a combined €7bn for the second
largest inflow in the survey.

Whereas Mercer saw the largest single increase in new mandates
at 47, these delegated assets only accounted for
€4.2bn in inflows, roughly equal with the €4.1bn in inflows seen by ING Investment Management Europe from six
Dutch clients.

Meanwhile, Russell Investments, with €9.2bn in European fiduciary assets, did not
figure in the table of the 20
largest managers, despite its global AUM at €72bn being ahead of fifth
ranked Syntrus Achmea with €55bn.

Overall, the Netherlands represented the largest single share of assets surveyed, claiming €662bn; Germany
claimed second

place with €192bn.

UK assets surveyed came a distant third at €40bn, despite the fact the country has nearly 250 clients overall, just
40 fewer than the Netherlands

indicating a trend that many smaller and medium
sized pension funds there are
opting to
transfer complete control of assets to a fiduciary or delegated manager.

Switzerland was by far the smallest single market, accounting for only €2bn of surveyed assets, with 'other'
European countries accounting for €19.6bn.

For a more detailed breakdown of the survey, please see the
current issue of IPE

Jonathan Williams