Strong growth projections from a recent report published by Moody's forecasting that Passive Investments will make up a quarter of the European Investment Market by 2025 (against 14% market share as it currently stands).
The large driver appears to be the digitisation of Investment Platforms that is now available to the cost-savvy European Retail Investor against a backdrop of increased regulatory scrutiny via MiFID II. This can be positioned against a similar report that was published by Moody's in 2017 suggesting US Passive Investments products would make up 50% of the US Investment market by 2024.
Passive funds' share of the European fund management market will total a quarter by 2025, according to a recent report by Moody's Investors Service. The group said the growth would be driven by the continued uptake from institutional investors and increasing regulation in the retail space. Passive funds made up 14% of the European market at the end of 2017 with this set to rise to 22% by 2025 in Moody's' base case scenario and 27% in its faster scenario.