LONDON — Managers of managers active in the European market have seen a meteoric rise in assets under management during the past two years.
And the market is on course to grow rapidly over the next three years, said Ben Phillips, managing director at Cerulli Associates, Boston.
Mediocre investment performance by balanced managers, Paul Myners' sweeping critique of U.K pension plans and marketing efforts are behind the double-digit jump, observers said.
Assets managed by Russell Investment Group, London, for European and U.K. clients topped £18 billion ($34.2 billion) at the end of September.
That is a 20% increase from year-end 2003 and a 44% rise since the end of 2002. Figures for calendar year 2004 are not yet available, according to spokeswoman Sarah Culpepper.
According to a survey on the global manager-of-managers market published last year by Cerulli, Russell was the largest manager of managers in Europe at the end of 2003, with a 64% share of the $30 billion market.
Russell was followed by SEI Investments Europe and Northern Trust Global Advisors Europe (Ltd.), both of London, which held 15% and 9% of the market, respectively.
Around a dozen smaller firms accounted for the remaining 12% of the market.
Mr. Phillips said it was too early to make reliable estimates of how the market grew during 2004, but he does not expect market shares of the three leaders to change significantly. It is likely, he added, that the market share of the smaller firms will have increased as the number of players in the market proliferates.