Asset managers are expected to deploy capital at an accelerated pace, according to an update from the European online lender in October.
Despite the global Outbreak of Covid-19 in 2020 and the resulting socio-economic uncertainty, the asset control industry is doing well, albeit stronger, the October team reveals.
They write in a blog post that total assets under control in France increased by 3. 5% during the year to almost 4,355 million euros. During the longest era since the 2008 crisis, “the annualized expansion rate of controlled assets of 4. 7%,” the update notes.
Control of assets on behalf of third parties in the French market
The number of asset control companies rose again to 680 at the end of last year, following “the creation of 43 companies in 2020 (after forty-five in 2019),” the announcement shows.
In addition to the Brexit effect, this trend can be “attributed to the creation of entities oriented to the control of unlisted assets (real estate, personal wealth, etc. )”, points out the October team.
They also claim that, in terms of AUM (Asset Under Management), French asset managers “rank first in continental Europe”. The market share of French asset control companies is “estimated at 28% in Europe (excluding the UK)”.
As in the update:
“In France, cumulative sales in 2020 for the top 4 investment budget categories (moary, bonds, diversified and stocks) were positive at €73 billion, after two years of exits in 2019 and 2018. “
The October team noted:
“At the European level, net inflows reached an impressive €622 billion in 2020, at an annual average of €587 billion during the 2015-2019 era.
Growth in remarkable amounts invested in budget in Europe (billions of euros)
Growth will be “supported in the coming months through European and/or state funds,” the update notes.
As discussed in the October blog post:
“The European Recovery Fund created through the European Commission after the Covid-19 epidemic: 800,000 million euros to invest in the economy”.
In France, in addition to their classic activities, 7 Asset Managers representing 33 entities have decided through insurers to “deploy the state-guaranteed recovery budget – which are part of the €6 billion fund for the recovery of SMEs – by June 2022,” according to the update. Revealed.
In a separate announcement, the October team showed that on September 7, 2014, it unveiled its platform in France with the purpose of “changing the finances of corporations through technology. “
October shared:
And today, after 7 years, we are in five other European countries: France, Spain, Italy, Holland and Germany. We have a giant network of 27,000 lenders who spice up their savings by supporting the genuine economy: they have already financed more than 1,700 projects for a total amount of 640 million euros.
They added:
“We could not believe that this had happened and our only purpose is to continue promoting using technological equipment such as October Connect, the result of 7 years of knowledge collection and analysis, which we have begun to empower institutions, banks, asset managers and platforms to make safer decisions.
In addition, they noted that 7 years later, October is “a large circle of relatives with its members living throughout Europe. “
For more main points about this update, click here.