ESMA report values EU Alternative Investment Funds at €5.8 trillion

10 January 2020

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Friday, January 10, 2020

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10 January 2020
Fund Management

Risk Analysis & Economics - Markets Infrastructure Investors

The European Securities and Markets Authority (ESMA) today published its second statistical report on European Union (EU) Alternative Investment Funds (AIF).
Sector breakdown
Funds of Funds accounted for 14% of the industry, followed by Real Estate Funds (12%), Hedge Funds (6%) and Private Equity Funds (6%).
Most AIFs are sold to professional investors (84%) but retail participation is significant at 16%, with the highest share in the Funds of Funds and Real Estate categories.
Liquidity risk an issue in Real Estate and Funds of Funds sectors
The two sectors with the largest percentage of retail investors, Funds of Funds (FoF) with 31% and Real Estate with 21%, are also the sectors where the report finds potential issues linked to liquidity.