In the third quarter of 2024, the Greek institutional asset management market recorded significant growth, recording total funds under management of EUR 36.86 billion, up by EUR 7.381 billion from the previous quarter and EUR 23.781 billion from the end of 2023. This increase is indicative of the steady recovery and strengthening investor confidence.
Increase in the individual categories of institutional management
The assets of UCITS (Undertakings for Collective Investment in Transferable Securities) managed by Greek UCITS amounted to EUR 20.61 billion. Specifically, these assets increased by 6.8% from the previous quarter and 30.5% from the beginning of the year. UCITS controlled by the Greek law 4099/12 increased by 31.8%, reaching EUR 16.93 billion, while UCITS of the European Union increased by 25.2%, to EUR 3.68 billion.Total capital inflows to UCITS in the third quarter reached EUR 820 million. Inflows to international bond UCITS were notable, amounting to EUR 770 million. Target Maturity Funds (MMFs) attracted new investors due to the possibility of generating regular income with capital preservation.
Positive returns in all categories
UCITS returns remained positive, with higher returns in US equity UCITS recording 17.48%, while international equity UCITS and developed market equity UCITS achieved returns of 13.86% and 13.24%, respectively. Greek equity UCITS returned 12.64%, indicative of the positive performance of the Greek market.
Increase in ESG funds
The Greek market has seen a significant increase in ESG (Environmental, Social and Governance) investments. There are 40 UCITS with ESG characteristics, with total assets of €874 million, which fall into the categories of equity, mixed, bond and funds of funds. This growth shows the increased awareness and demand for investments that comply with environmental and social criteria, in line with EU Regulation 2019/2088.
Significant growth in the asset management and alternative investment sector
Assets in Asset Management amounted to EUR 10.008 billion, up EUR 5.261 billion from the previous quarter and up EUR 12.241 billion from the beginning of the year. This includes institutional portfolios of Professional Insurance Funds, confirming the market trend towards stable and long-term investments.In addition, Alternative Investment Funds (AIFs) and Portfolio Investment Companies (PIFs) manage assets worth €728 million, of which over €470 million are Private Equity. These investments point to a steady demand for alternative investment products with higher return potential.
Dynamics in the AIFM&A and real estate sector
The market for REITs (Real Estate Investment Trusts) continues to show an upward trend. As of June 30, 2024, total real estate investments stood at EUR 5.514 billion, an increase of 14.75% since the end of 2023. This rise reflects the increased investor confidence in the Greek real estate market and the exploitation of the positive outlook in the sector. The overall performance of the institutional management market in Greece shows that investor confidence is steadily recovering, geared towards sustainable and profitable investments. With the strengthening of ESG and alternative investments, the Greek market shows that it is on a path of convergence with international trends and the requirements of the modern economy