Portfolio Management & Investment Advice in European Union: Market Size, Businesses & Forecast 2026

The portfolio management and investment advice industry in the European Union provides professional asset management and financial planning services through discretionary mandates and collective investment schemes. According to the European Fund and Asset Management Association (EFAMA), total European assets under management (AuM) reached a historic EUR 33.0 trillion in 2024 and grew to approximately EUR 34.4 trillion by end-Q3 2025. The sector is highly concentrated, with Luxembourg and Ireland remaining the primary fund domicile hubs, collectively representing nearly half of European fund assets. The industry is shifting toward larger funds, passive vehicles like ETFs, and navigating the i

Industry snapshot

Key public data points

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What does the Portfolio Management & Investment Advice in European Union industry cover?

The European portfolio management and investment advice industry encompasses professional financial services provided on a fee or contract basis. These services are split between collective investment schemes, such as Undertakings for Collective Investment in Transferable Securities (UCITS) and Alternative Investment Funds (AIFs), and individual discretionary mandates managed on behalf of institutional or retail clients.

• •Under NACE Rev. 2, the core activities fall under Class 66.30 (Fund management activities) and Class 66.19 (Other activities auxiliary to financial services).
• •At the end of 2024, investment funds represented 58% of total European AuM, while discretionary mandates made up the remaining 42%.
• •Luxembourg is the largest fund domicile in Europe, holding a 25% market share of European UCITS and AIF assets in late 2024, followed by Ireland at 21%.

Who operates in the industry and how is it structured?

The European investment management industry comprises over 4,600 asset management companies directly employing approximately 130,000 individuals. The market exhibits geographic concentration, with six countries managing nearly 85% of the region's total assets under management. While many boutique managers operate locally, a growing share of market volume is consolidating into multi-billion euro funds to leverage economies of scale.

• •By end-2024, UCITS with more than EUR 10 billion in AuM accounted for 25% of the European market, a notable rise from under 20% in 2023.
• •The five largest European asset management hubs include the United Kingdom, France, Germany, Switzerland, and the Netherlands.
• •Cross-border funds accounted for 50% of European investment fund net assets in 2024, totaling EUR 11.81 trillion, showing a steady rise from 43% in 2015.

What drives demand in the industry?

Demand for portfolio management is heavily driven by retail participation and the structural shift from bank deposits to capital markets. The ongoing development of the European Savings and Investment Union (SIU) seeks to actively channel excess household cash into long-term investment products. Demographic shifts, such as aging populations and the corresponding pressure on state pension systems, further bolster the need for private retirement planning and lifecycle strategies.

• •European retail household purchases of investment funds rose to EUR 258 billion in 2024, marking the second-highest level of the decade.
• •Approximately 40% of European household financial assets remained in low-yielding bank deposits as of late 2024, highlighting a massive untapped market for advisory services.
• •Record retail purchases of investment funds peaked at EUR 295 billion in 2025, driven by interest in capital market exposure during monetary easing cycles.

Who are the notable companies in the industry?

The competitive landscape features a mixture of large European banking groups, dedicated global asset management specialists, and regional insurers. To maintain competitiveness, major players are actively reducing average fees for long-term UCITS. Firms are increasingly required to differentiate themselves through passive ETF offerings, customized institutional mandates, and digital advice platforms.

• •Amundi SA, headquartered in France, operates as the largest European asset manager with over EUR 2 trillion in total assets under management.
• •DWS Group GmbH & Co. KGaA, the listed asset management arm of Deutsche Bank, is a dominant operator based in Germany.
• •Schroders PLC, a major UK-headquartered global asset manager, retains an extensive presence and distribution network across EU member states.
• •Anima Holding SpA is a prominent, publicly listed independent asset management group based in Italy.

What are the recent trends and outlook?

The prominent trend reshaping the EU asset management market is the rapid rise of exchange-traded funds (ETFs) over traditional active mutual funds. European fund flows have tilted heavily toward passive strategies, particularly equity ETFs tracking global or US indices. Concurrently, sustainable investing faces structural hurdles, as stricter regulatory definitions have triggered net outflows from specialized green funds.

• •In 2025, European ETFs recorded an all-time high of EUR 347 billion in net inflows, led primarily by equity ETFs at EUR 261 billion.
• •Active, non-ETF equity UCITS suffered their third consecutive year of net outflows in 2025, losing EUR 24 billion.
• •SFDR Article 9 funds, representing products with explicit sustainable objectives, recorded negative annual net sales in both 2024 and 2025.

How is the industry regulated?

The European regulatory landscape is highly integrated and governed by comprehensive directives that set global standards for fund distribution and investor protection. Key regulations dictate strict disclosure requirements, fee structures, and capital adequacy for managers. Compliance teams are currently focused on adapting to changes under the sustainable finance frameworks and implementing updated administrative rules.

• •The Sustainable Finance Disclosure Regulation (SFDR) governs sustainability classifications, sorting products under Article 6, Article 8, or Article 9 based on ESG characteristics.
• •The European Long-Term Investment Fund (ELTIF 2.0) framework aims to increase retail investor access to private equity, private debt, and infrastructure projects.
• •The UCITS Directive continues to serve as the internationally recognized gold standard for cross-border retail fund distribution.

Government, statistical and trade sources used for this Claight analysis.

• EFAMA Asset Management Report 2025 ·
• EFAMA Fact Book 2025 ·
• EFAMA Fact Book 2026 ·
• Eurostat NACE Rev. 2 Classification Database