In 2024, France’s asset management sector reached €5.033 trillion, marking an 8.7% growth from the previous year. Key advancements include a 10.7% increase in collective management assets and a record net inflow of €40.8 billion in bond funds. Funds adhering to ESG criteria saw a 15.4% rise, while overall positive returns were reported across various fund categories. Despite a slight decrease in the number of management firms, the outlook remains strong, emphasizing performance and sustainability in a rapidly evolving market.
Historic Growth of Asset Management in France
In 2024, France’s asset management sector achieved a remarkable milestone, reaching an impressive €5.033 trillion in assets under management. This achievement showcases a robust growth trajectory, with an 8.7% increase compared to the previous year. This surge signifies a pivotal moment for the industry, surpassing the performance levels seen during the 2008 financial crisis. Since that period, French asset management has demonstrated an annualized growth rate of 4.4%, solidifying its status as a key contributor to the European economy.
Expansion and Trends in the Asset Management Sector
The annual report from the French Association of Financial Management (AFG) highlights significant advancements in collective management, which now totals €3.500 trillion, reflecting a 10.7% year-over-year growth. A crucial segment of this progress is the French law funds, amounting to €2.502 trillion, which have increased by 9.8%. Additionally, foreign law funds have also seen substantial growth, rising by 13.1% to approach €1.000 trillion, underscoring France’s appeal as a prominent global financial hub.
The bond fund market has set a new record for net inflows in 2024, achieving a remarkable +€40.8 billion, complemented by €4.2 billion from money market funds. Conversely, equity and diversified funds faced net outflows of -€18.3 billion, indicating that some investors are exercising caution due to ongoing global economic uncertainties.
Funds categorized under the ‘SFDR’, which incorporate environmental, social, and governance (ESG) criteria, have seen a notable upward trend. In 2024, their assets grew by 15.4% to reach €1.647 trillion, significantly outperforming other segments. This category includes Article 8 funds that integrate ESG criteria without specific sustainability targets, and Article 9 funds focused on achieving distinct environmental or social objectives.
Overall, the performance of funds in 2024 has been positive, with returns of +10.3% for equities, +6.5% for diversified funds, +4.3% for bond funds, and +3.9% for money market funds. Despite this favorable environment, the total number of French management companies slightly decreased from 700 to 695, even with the establishment of 27 new firms in 2024.
At the European level, fund assets exceeded €23.470 trillion, marking a 13.2% increase in 2024. Net inflows reached €665 billion, surpassing the ten-year average. This surge was primarily driven by bond and money market funds, which continue to draw considerable investor interest.
The outlook for asset management appears promising, with a market undergoing significant evolution and rising expectations regarding performance and sustainability. The prevailing trends indicate new opportunities for industry participants, who will need to adapt to a landscape increasingly centered on ESG principles while maintaining competitive profitability.