Continental European asset managers represent about 31 percent of professionally managed assets in the world. But the euro zone crisis presents a major challenge. In fact, it has added to woes going back almost a decade. Between 2004 and 2010, European managers grew at a compound annual growth rate of two percent. By contrast, the U.S. and U.K. markets grew by five percent. What’s more, during the five years ending in 2010, foreign firms garnered 75 percent of new flows into long-term mutual funds in the region. But now with the European debt crisis in full swing and the future of the euro in question, continental European asset managers are facing an even bigger threat as their parent banks struggle with capital requirements and sovereign debt on their balance sheets. 

To get a clearer picture of what is happening to European asset managers, Senior Writer Julie Segal interviewed Kevin Quirk, a founding partner of Casey, Quirk & Associates, a consultancy for the investment management industry.

1. We all hear daily of the fiscal and currency woes in Europe. What does this mean for the asset management industry there?