Solvency II - Benefits of Strategic Implementation
Maeve Verdon, Associate General Counsel, AIG Asset Management (Europe) Limited
Asset management is the professional management and trading of securities and other types of assets to achieve a specific investment goal. Asset managers specialise in managing discretionary mandates and investment funds through providing cost-efficient portfolio management solutions to meet particular investment goals and constraints. It is an agency activity performed on behalf of end investors. It is, therefore, not surprising that institutional investors constitute the majority of the client base. Across Europe, total assets under management (AuM) increased 9% in 2013 and 15% in 2014, to reach an estimated EUR 19 trillion at end 2014. This growth came on the back of strong performances on financial markets around the globe. Insurers play a significant role in the market for institutional investments: at the end of 2014, institutional investors dominated the European asset management market constituting 76% of total AuM in Europe, with retail investors accounting for the remaining quarter. Of this total, investments by insurance firms, accounted for 39% of total institutional AuM last year. While this represents a drop of 3% from 2013, the relative importance of individual client groups has not changed markedly over the past decade.
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