European stock market giants are fighting for primacy in passive investing

There are two management companies in Europe, who have crossed or approached the barrier in $1 trillion assets under management – this is the French Amundi SA (€1.8 trillion) and German DWS GmbH (€880 B). And the competition between them is only growing..

Европейские гиганты фондового рынка сражаются за первенство в пассивном инвестировании

In recent years, Amundi has confidently led over DWS., from quarter to quarter, double the amount of assets under management. On Thursday, the Paris-based company announced an increase in 9% compared to last year the volume of assets under its management, to more than €1.8 trillion ($2 trillion) at the end of the III quarter. That's twice as much., than €880 billion from DWS.

First 2019 both companies increased their assets under management by about a 25%. But it is worth considering, that the French company was helped by last year's purchase of the stock division of the Spanish bank Banco de Sabadell SA, which added €22 billion. Its German competitor relied on organic growth to expand the business..

Now competition in the fast-growing market for low-cost passive products is intensifying.. Valerie Bodson, who took over as CEO of Amundi this year, built the company's exchange-traded funds business from scratch. She will oversee the integration of Societe Generale SA's Lyxor division., which Amundi agreed to buy in April and expects to complete the acquisition by the end of the year.

Lyxor's assets amount to about € 124 billion, including about €100 billion in exchange-traded funds, according to Bloomberg Intelligence. Reported, that DWS also claims a division of SocGen. Amundi's triumph will take it to second place in the European market of exchange-traded products, ahead of DWS and losing first place to BlackRock Inc.

DWS also missed an opportunity to acquire the asset management division of Dutch insurer NN Group NV, and Goldman Sachs Group Inc. in August, acquired NN Investment Partners and its assets in the amount of $355 billion.

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Based on materials from Bloomberg

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