observatory for management companies: 2016 barometer · 3 blackrock (luxembourg) s.a. 133,888 26% 3...

Observatory for Management Companies 2016 Barometer

www.pwc.lu/management-companies

Your current challenges

Top 5 areas requiring specific attention in the coming months

Super-Mancos UCITS-ManCos AIFM-ManCos

Law & Regulation changes Distribution Law & Regulation changes

Distribution Risk management Risk management

Governance & Compliance Law & Regulation changes Governance & Compliance

Sales Governance & Compliance Market developments

Risk management Transparency & investor needs Performance of vendors & Service providers

Source: Luxembourg Fund Governance Survey (2014)

1

2

4

3

5

Assisting Management CompaniesOur solutions, tailored to Management Companies, include the following services:• External Audit• Internal Audit• Fund Compliance• Global Fund Distribution • Information Technology• People and Organisation• Risk Management• Global Tax Compliance / Asset

Management Tax services• Corporate Tax / Personal Tax / VAT /

Transfer Pricing / Accounting• Regulatory Advisory• 3W - Your integrated Watch service

for Fund Distribution, Regulatory and Tax

• Due Diligence / Anti Money Laundering

• Third Party Assurance• Solvency II• Performance Fees

Our dedicated Management Company team is experienced in delivering effective solutions on Regulatory, Tax, Operational, People, Risk Management, Reporting and many other topics affecting the business of a Management Company and its investment vehicles.Together with a very strong international network, our people support the growth of a significant proportion of Management Companies.

For more information on how PwC Luxembourg is helping ManCos thrive in the markets of tomorrow, please contact us today or visit: www.pwc.lu/management-companies.

Management Companies snapshots

Number of UCITS ManCos*

204

Assets under Management of UCITS ManCos (in billion Euros)*

3,071Number of new entrants in 2015

37

Number of AIFM ManCos*

200Number of employees in UCITS ManCos*

3,768

PwC ManCo Index

181.4(+16.9%)

* As of 31 December 2015

PwC ManCo Index

Source: PwC analysis

The PwC ManCo Index measures ManCos' activities in Luxembourg by considering the growth in the number of UCITS ManCos, the number of their employees and the evolution of their AuM. During 2015, the PwC ManCo Index increased by 16.9%. This growth is explained by the significant increase in both the number of employees (+11%) and the AuM (+25%), combined with a slight decrease in the number of UCITS ManCos (-1%).The trend towards the growth of average AuM per ManCo is confirmed by the decline of self-managed SICAVs, which were divided by two between 2013 and 2014 while the level of assets was divided by four. And this trend should be confirmed in 2015. The number of ManCos with an AIFM license grew from 169 to 200 in 2015, confirming a huge success following the transposition of the AIFM directive into Luxembourg Law in July 2013. On the ManCo's side, 86% of the new entrants in 2015 were AIFMs. More than half of existing AIFM ManCos have originated from Switzerland, Germany and France, based on their AuM, while UCITS ManCos come mainly from the USA, UK and Switzerland. Concerning licensing, 85% of the Top 20 UCITS ManCos also have an AIFM license. On the other hand, 89% of the Top AIFM ManCos also have a UCITS license. Of the Top Third Party ManCos, 100% have both a UCITS and an AIFM license: on average, they manage EUR 20,026 million, which corresponds to an increase of 19% compared to 2014.

80

100

120

140

160

180

200

80

100

120

140

160

180

200

Dec-

10

Dec-

11

Dec-

12

Dec-

14

Dec-

15

Dec-

13

Mar

-11

Mar

-12

Mar

-13

Mar

-15

Mar

-14

Jun-

11

Jun-

12

Jun-

13

Jun-

15

Jun-

14

Sep-

11

Sep-

12

Sep-

13

Sep-

15

Sep-

14181.4

(+16.9%)

Key figures on UCITS ManCos and AIFM ManCos

Sources: CSSF Monthly Newsletter (2015), PwC analysis, CSSF Official List (2015)

New entrants by nationality in 2015

◼ Luxembourg◼ Germany◼ Switzerland

◼ USA◼ France◼ Other

* Estimation based on PwC analysis.

86%

AIFM ManCos

14%

UCITSManCos

35%

14%8%

5%

24%

14%

# of new entrants by nationality

37*

Sources: PwC analysis, Fundsquare (December 2015), CSSF Official List (2015), Company Latest Financial Statements

20%

14%

10%

8%

8%

26%

14%

# ManCos

◼ Switzerland◼ UK◼ USA◼ France

◼ Germany◼ Italy◼ Other

14%

12%

28%10%

12%

8%

16%

AuM

Origin of Top 50 UCITS ManCos

◼ Germany◼ Switzerland◼ Luxembourg◼ UK

◼ USA◼ France◼ Other

24%

20%

2%11%

10%

12%

21%

AuM

Origin of Top 50 AIFM ManCos

22%

16%

8%

8%

6%

30%

10%

# AIFMs

Sources: PwC analysis, Fundsquare (December 2015), CSSF Official List (2015), Company Latest Financial Statements

Ranking ManCo Nat

iona

lity

*Sum

of A

uM

Dec

-201

5

Varia

tion

to

Dec

-201

4

Sum

of #

of

fund

s D

ec-2

015

Varia

tion

of #

of

fund

s to

D

ec-2

014

Sum

of #

of

subf

unds

Dec

-20

15Va

riatio

n of

#

of s

ubfu

nds

to

Dec

-201

4

Fore

ign

Bra

nch

UC

ITS

Lice

nse

AIF

MLi

cens

e

Add

ition

al

auth

oris

atio

n

1 JPMorgan Asset Management (Europe) S.à r.l.

256,439 14% 10 -1 178 -2 � � �

2 Deutsche Asset & Wealth Management Investment S.A.

166,501 67% 124 4 634 315 � � �

3 Blackrock (Luxembourg) S.A. 133,888 26% 3 0 101 7 �

4 Franklin Templeton International Services S.à r.l.

114,030 -14% 5 -1 102 -1 � �

5 UBS Fund Management (Luxembourg) S.A.

107,186 16% 27 0 263 -9 � �

6 Schroder Investment Management (Luxembourg) S.A.

100,149 11% 9 0 165 6 � � �

7 FIL Investment Management (Luxembourg) S.A.

98,105 14% 9 0 177 10 � �

8 BNP Paribas Investment Partners Luxembourg S.A.

80,832 7% 28 -3 291 -69 � �

9 Pictet Asset Management (Europe) S.A.

79,081 12% 9 -2 106 -7 � �

10 Pioneer Asset Management S.A.

74,496 19% 14 0 156 7 � �

11 Eurizon Capital S.A. 62,140 29% 20 -11 216 -13 � �

12 Nordea Investment Funds S.A. 60,379 26% 9 0 109 6 � � �

13 Deka International S.A. 53,975 1% 124 -3 224 -22 � �

14 Union Investment Luxembourg S.A.

51,597 9% 180 -2 195 1 � � �

15 INVESCO Management S.A. 47,575 24% 2 0 67 8 � �

16 AXA Funds Management S.A. 47,415 4% 14 0 118 -3 � �

17 AllianceBernstein (Luxembourg) S.à R.L.

46,840 -4% 18 3 103 9 � � �

18 Amundi Luxembourg S.A. 45,073 4% 8 0 118 -2 � �

19 NN Investment Partners Luxembourg S.A.

43,617 1% 13 -2 154 -12 � � �

20 Robeco Luxembourg S.A. 38,325 8% 5 0 63 6 �

Top 20 UCITS ManCos - as of 31 December 2015 (in million Euros)

* Part I, Part II and SIF

Note: These tables present the Top 20 UCITS ManCos, the Top AIFM ManCos and the Top Third Party ManCos domiciled in Luxembourg. ManCos are ranked by Assets under Management.

• AuM managed by Foreign ManCos and Self-Managed SICAVs; and • Foreign AuM managed by Luxembourg ManCos are not considered in these rankings.

Sources: Company information, CSSF Official List (2015), Fundsquare (2014 - 2015), Company Latest Financial Statements, PwC analysis

Ranking ManCo Natio

nalit

y

*Sum

of A

uM

Dec-

2015

Varia

tion

to

Dec-

2014

Sum

of #

of

fund

s De

c-20

15

Varia

tion

of #

of

fund

s to

De

c-20

14Su

m o

f # o

f su

bfun

ds D

ec-

2015

Varia

tion

of #

of

sub

fund

s to

De

c-20

14

Fore

ign

Bran

ch

UCIT

S Li

cens

e

AIF

MLi

cens

e

Add

ition

al

auth

oris

atio

n

1 Deka International S.A. 26,459 2% 42 -2 116 -20 � �

2 Cadelux S.A. 16,076 100% 3 3 12 12 � �

3 Pictet Asset Management (Europe) S.A.

15,660 -8% 6 -2 26 -10 � �

4 Universal-Investment-Luxembourg S.A.

15,588 25% 34 -3 39 -8 � �

5 KBC Asset Management S.A. 13,853 9% 10 1 251 -11 � �

6 Global Funds Management S.A.

12,240 -6% 19 -1 30 -1 �

7 MUGC Lux Management S.A. 10,943 28% 41 -6 67 -3 � �

8 Fundpartner Solutions (Europe) S.A.

10,823 11% 44 2 252 49 � �

9 Deutsche Asset & Wealth Management Investment S.A.

10,754 -24% 25 2 37 12 � � �

Ranking ManCo Nat

iona

lity

*Sum

of A

uM

Dec

-201

5

Varia

tion

to

Dec

-201

4Su

m o

f #

of fu

nds

Dec

-201

5Va

riatio

n of

#

of fu

nds

to

Dec

-201

4Su

m o

f # o

f su

bfun

ds

Dec

-201

5Va

riatio

n of

#

of s

ubfu

nds

to

Dec

-201

4Fo

reig

n B

ranc

h

UC

ITS

Lice

nse

AIF

MLi

cens

e

Add

ition

al

auth

oris

atio

n

1 FundRock Management Company S.A.

32,179 13% 40 -2 207 13 � �

2 Lemanik Asset Management S.A. 23,148 4% 50 6 231 12 � � � �

3 MDO Management Company S.A. 22,249 63% 54 5 253 23 � � �

4 Northern Trust Luxembourg Management Company S.A.

22,041 3% 8 -2 56 -4 � �

5 Universal-Investment-Luxembourg S.A. 20,742 17% 65 0 93 0 � �

6 Fundpartner Solutions (Europe) S.A. 18,802 24% 44 8 252 75 � �

7 UBS Third Party Management Company S.A. 17,069 31% 19 3 117 15 � �

8 IPConcept (Luxembourg) S.A. 13,100 31% 180 6 280 20 � �

9 MultiConcept Fund Management S.A. 10,909 15% 22 6 95 20 � �

* Part II and SIF

* Part I, Part II and SIF

Top AIFM ManCos - as of 31 December 2015 (in million Euros)

Top Third Party ManCos - as of 31 December 2015 (in million Euros)



Note: These tables present the Top 20 UCITS ManCos, the Top AIFM ManCos and the Top Third Party ManCos domiciled in Luxembourg. ManCos are ranked by Assets under Management.

• AuM managed by Foreign ManCos and Self-Managed SICAVs; and • Foreign AuM managed by Luxembourg ManCos are not considered in these rankings.

Evolution of AuM (FCP/SICAV) managed by UCITS ManCos (in billion Euros)

Sources: CSSF Annual Activity Reports (2006 - 2014), Fundsquare (December 2015), PwC analysis

◼ SICAV◼ Total

◼ FCP

0

1,000

1,500

2,000

2,5003,0003,500

500

711.41,306

594.6

2006

819.81,476.8

657

2007

627.71,107.1

479.4

2008

778.21,293.3

515.1

2009

9721,526

554

2010

963.71,472.3

508.6

2011

1,164.41,717.1

552.7

2012

1,342.61,935.8

593.2

2013

1,829.42,451.9

622.5

2014

2,288.63,070.7

782.1

20150

500

1000

1500

2000

2500

3000

3500

Evolution of Balance Sheet and Net Profit of UCITS ManCos (in million Euros)

◼ Balance Sheet

◼ Net Profit

Source: CSSF Annual Activity Reports (2007-2014)

2,000

4,000

6,000

8,000

10,000

12,000

00

2000

4000

6000

8000

10000

12000

Dec

-10

Dec

-07

Dec

-08

Dec

-09

Dec

-11

Dec

-12

Dec

-13

Dec

-14

7,1886,353 6,758 7,260 7,171

7,502

9,865

11,218

2,3491,454 1,542 1,663 1,616 1,768 2,012 2,436

Evolution of # of UCITS ManCos and AIFM ManCos

Source: CSSF Monthly Newsletters (2004 - 2015)

50

100

150

200

250

0

Dec-

10

Dec-

09

Dec-

08

Dec-

06

Dec-

05

Dec-

04

Dec-

07

Dec-

11

Dec-

12

Dec-

13

Dec-

14

Dec-

15

◼ # of UCITS ManCos

◼ # of AIFM ManCos

0

50

100

150

200

250

26

59

149

179 187 194 180 180195

206 204200

157

10

180

Employment

Evolution of employment in UCITS ManCos

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

02004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Sources: CSSF Annual Activity Reports (2004-2014), CSSF Monthly Newsletters (2015)

0

500

1000

1500

2000

2500

3000

3500

4000

+8%+9%

+19%+4%

+11%

511

1,572

2,0692,348 2,386

2,308

2,3392,516

2,743

3,253 3,389

3,768

# of employees in the TOP 50 ManCos

0

5

10

15

2020

15

10

5

01-10

6

20

12

7

5

11-50 51-100 > 100 Not disclosed

Average

55 Median

22

Sources: Company Latest Financial Statements, CSSF Official List (2015), PwC analysis

Top countries in terms of # of ManCos

Source: ESMA Registers and Data (2016)

UCITS ManCos

UCITS ManCos

UCITS ManCos

UCITS ManCos

AIFM ManCos

AIFM ManCos

AIFM ManCos

AIFM ManCos

316342

93194

159

362235

219

FR

UK

ES

LU

Evolution of Self-Managed SICAV

Source: ALFI Monthly Statistical summary (2011 - 2015)

◼ # of Funds

◼ # of Sub-Funds

◼ Total AuM in billion Euros

175 164104 57 44

1,457

1,260

372279

1,500

1,800

1,200

900

600

300

0Dec-11 Dec-12 Dec-13 Dec-14 Sept-15

50

100

150

200

250

300

350

400

0

300

600

900

1200

1500354 362

339

77 61

907

Evolution of Foreign ManCos (managing Luxembourg UCITS)

Source: CSSF Annual Activity Reports (2013 - 2014)

In AuM (in billion Euros)

40

60

80

100

120

20

00

20

40

60

80

100

120

◼ Total AuM (2013)

◼ Total AuM (2014)

IrelandFrance Germany The Netherlands

UKItaly

12 13 16

118

3

17

38

69

22

In number

France

20 282013 2014

Italy

3 62013 2014

Germany

0 22013 2014

The Netherlands

0 12013 2014

Ireland

0 22013 2014

United Kingdom

3 62013 2014

Source: CSSF Annual Activity Reports (2013 - 2014)

Key statistics per ManCo - as of 31 December 2015 (TOP 50 ManCos)

Sources: PwC analysis, Company Latest Financial Statements, Fundsquare (2015)

48,497 Mio Eur

13,206 Mio Eur 256,439

Mio Eur

AverageMin

Median

AuM per Manco

Max

32,867

Min14010 634

Average

# Sub-Funds per ManCo

MaxMin

Median

109

241 180

Average

Min

# Funds per ManCo

Max

Median

11

552 461

Average

Min

# Staff per ManCo

Max

Median

22

Key data on investment funds

Equity Global

1Equity Europe

2Equity US

3

Sources: Lipper LIM and PwC analysis (December 2015), PwC's Global Fund Distribution Poster (2016)

Sources: Lipper LIM and PwC analysis (December 2015), PwC's Global Fund Distribution Poster (2016)

France

1Italy

2Austria

3

Top 3 countries in terms of new registrations for distribution in 2015

Top 3 Asset Classes with new registrations for distribution in 2015

Evolution of AuM by legal status (in billion Euros)

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

0

500

1000

1500

2000

2500

3000

3500

4000◼ Part I (Law 2010) “UCITS”

◼ Part II (Law 2010)

◼ SIF*

* Including funds under the former Law of 1991 Source: CSSF Statistics (2001 - 2015)

AuM, in million Euros

Dec. 2015 Dec. 2010

Part I (law 2010) “UCITS”

2,946,860 84% 1,762,666 80%

Part II (law 2010)

169,896 5% 222,178 10%

SIF 389,445 11% 214,150 10%

Total 3,506,201 100% 2,198,994 100%

Evolution of number of funds in Luxembourg by legal status

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

0

500

1000

1500

2000

2500

3000

3500

4000◼ Part I (Law 2010) “UCITS”

◼ Part II (Law 2010)

◼ SIF*

* Including funds under the former Law of 1991 Source: CSSF Statistics (2001 - 2015)

Number of funds

Dec. 2015 Dec. 2010

Part I (law 2010) “UCITS”

1,892 49% 1,846 50%

Part II (law 2010)

384 10% 629 17%

SIF 1,602 41% 1,192 33%

Total 3,878 100% 3,667 100%


Super-ManCos

UCITS-ManCos 38%

58% 26%

12% 50%

16%ManCo

passport

◼ Yes

◼ No, still considering

◼ No, not likely to

Use of ManCo passport

33%

UCITS-ManCos

Proportion of Boards with at least one independent director


80%

AIFM-ManCos

Super-ManCos

43%

Governance


Board Composition

2014Average (including Chairman) 4-5

Smallest 3

Biggest 10

The average Fund and ManCo board consists of 4 to 5 directors including the Chairman, but the number of members frequently increases in conjunction with the size of AuM overseen. The smallest board contains only 3 members, the minimum permitted by CSSF regulation and Company Law. The biggest board observed, an AIFM ManCo, contains 10 directors.


Average frequency of Board meetings and Director attendance

2014Board meetings per year 7

Physical attendance of Board members 72% - 92%

Your contacts

PwC Luxembourg

@PwC_3W @PwC_Luxembourg

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Steven Libby Partner, Asset Management Leader +352 49 48 48 2116 [email protected]

Xavier Balthazar Partner, Advisory +352 49 48 48 3299 [email protected]

Patrick RiesPartner, Audit +352 49 48 48 [email protected]

Laurent de La MettriePartner, Tax+352 49 48 48 [email protected]

Laurent Carême Director, Management Company Observatory Leader +352 49 48 48 2318 [email protected]

PwC Luxembourg (www.pwc.lu) is the largest professional services firm in Luxembourg with 2,600 people employed from 58 different countries. PwC Luxembourg provides audit, tax and advisory services including management consulting, transaction, financing and regulatory advice. The firm provides advice to a wide variety of clients from local and middle market entrepreneurs to large multinational companies operating from Luxembourg and the Greater Region. The firm helps its clients create the value they are looking for by contributing to the smooth operation of the capital markets and providing advice through an industry-focused approach.

The PwC global network is the largest provider of professional services in the audit, tax and management consultancy sectors. We are a network of independent firms based in 157 countries and employing over 208,000 people. Talk to us about your concerns and find out more by visiting us at www.pwc.com and www.pwc.lu.

© 2016 PricewaterhouseCoopers, Société coopérative. All rights reserved. In this document, “PwC” or "PwC Luxembourg" refers to PricewaterhouseCoopers, Société coopérative which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. PwC IL cannot be held liable in any way for the acts or omissions of its member firms.

observatory for management companies: 2016 barometer · 3 blackrock (luxembourg) s.a. 133,888 26% 3...

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