Affluence under management increases among financial advisors.
Independent asset management firms in Germany have seen significant growth and efficiency improvements over the past decade, according to a study led by finance professor Hartwig Webersinke at the Institute for Asset Management at Aschaffenburg University of Applied Sciences.
The study, which includes self-reported data from participating asset managers since 2014, reveals that about four out of five independent asset managers now achieve double-digit returns on equity. The performance of these firms, as well as their growth and efficiency, suggest a positive outlook for the independent asset management industry in Germany.
The assets managed by these firms primarily consist of assets from private clients, with a smaller portion from companies and foundations. Since 2014, the assets under management (AUM) have more than doubled, with the median rising from 110 million euros to 232 million euros in 2021. The majority of the assets managed, 82 to 87 percent, come from private clients.
The study also shows that independent asset management firms have increased the assets they manage for their clients, under a license according to paragraph 32 of the German Banking Act. However, specific data on the increase in assets managed by independent asset management firms in Germany from 2014 to 2021 is not provided in the study.
Industry reports from financial research firms, regulatory filings by German financial authorities, or specialized asset management industry surveys would provide more precise figures on the AUM for independent asset management firms in Germany over 2014-2021.
The pre-tax return on equity has significantly increased during the observation period, with 45 percent of panel participants achieving a return on equity of more than 30 percent in 2021. Companies accounted for only 7 to 10 percent, and foundations for 5 to 6 percent, of the assets managed during this period.
The study did not provide details about the impact of the increase in assets managed on the profitability or success of these firms. However, it did mention that the firms are working more efficiently.
The average number of clients has increased since 2014, with a median of 360 clients (on average 500) in 2021. Since 2013, independent asset management firms have achieved a cumulative plus of 56.2 percent, equating to an average annual return of 5.34 percent before costs.
The study panel group consists of 43 asset managers who have participated in at least seven out of eight InVV surveys since 2014. Professor Webersinke describes independent asset management as "a thriving industry that is growing strongly and has further potential."
In conclusion, the study highlights the growth and positive outlook for the independent asset management industry in Germany. While specific data on the increase in assets managed by independent asset management firms in Germany from 2014 to 2021 is not provided in the study, the performance and efficiency improvements suggest a robust and expanding market. For precise quantitative data, consult specific industry reports or statistical releases from entities like BVI or BaFin (the German Federal Financial Supervisory Authority).
In light of the study's findings, it's clear that private clients are the primary investors in independent asset management firms in Germany, with their managed assets doubling since 2014. These firms have also shown a keen interest in wealth management and personal finance, as evidenced by their increased asset management under a license according to paragraph 32 of the German Banking Act.
The growth and efficiency improvements seen in these firms indicate a thriving market for investment opportunities, such as insurance, finance, and investing, thus offering potential for future wealth-management ventures.
