European institutional assets have grown for three consecutive years, and the rate of growth is accelerating
The assets managed on behalf of European institutional investors increased at faster rate than global assets under management (AUM) last year, according to IPE’s 2026 Top 500 Asset Managers report.
Managers of European institutional assets reported a 5.8% rise in AUM last year, adding some €670bn to reach €12.2trn. This compares with an increase of 4% in global AUM, which added €5.2bn to reach a new all-time high of €134.2trn. Global AUM growth decelerated significantly last year, compared with the 16.2% increase recorded during 2024.
Meanwhile, European institutional assets have grown for three consecutive years, and the rate of growth is accelerating, starting form 2.8% in 2023, followed by a 5.5% increase in 2024.
However, European AUM is still below the 2022 peak of €13.2trn.
The slowdown in global AUM growth is partly caused by US dollar weakness relative to the euro, given that global managers mostly report AUM in US dollars. IPE reports AUM in euros.
Top 10 see faster growth, maintain market share
The top 10 European institutional managers, according to IPE’s AUM-based ranking, recorded an 11% rise in AUM last year, which compares with a 1.6% rise in AUM for the rest of this group. The top 10 managers in IPE’s ranking have maintained control of nearly 50% of European institutional assets.
French managers make headway
The ranking of top managers of European institutional assets saw significant movements. With €673.5bn of assets, Amundi is now the second-largest manager in terms of AUM, taking over from the UK’s LGIM.
Goldman Sachs gained the fourth position and BNP Paribas Asset Management joined the top 10 in the fifth position, after completing its merger with AXA Investment Managers last year.
Managers expand footprint in pension fund market
This year’s Top 500 Asset Managers study shows that the pension fund assets represent nearly 44% the overall assets managed by European institutional managers, an increase of 10 percentage points from last year.
At the same time, European institutional managers have seen the share of assets held on behalf of insurers and corporate clients decline from 27% and 24.5%, respectively, to around 21%.
A complex asset allocation picture
Developed market equities remain the largest asset class in European institutional portfolios, with a 17.9% share of overall client assets, rising slightly from 17.2% last year. European clients have also raised their allocation to public debt, investment grade credit and real assets.
IPE’s study has observed a sharp rise – from 9.9% last year to 14.3% this year – in the ‘other’ category of asset classes. This is the category survey respondents choose to identify strategies and products that do not fit neatly within the more established traditional and alternative asset classes. The rise in respondents choosing this category suggest managers are struggling to label a large portion of strategies and products, a trend in line with the tendency of institutional clients to seek customised solutions to their investment needs.
