Driven by explosive growth in passive strategies and ETFs that now command trillions, the global asset management industry is a colossal, $120-trillion ecosystem where capital, innovation, and ambition converge across every region and strategy imaginable.
Key Takeaways
- The global asset management industry managed $119.7 trillion in assets under management (AUM) at the end of 2023, up 12.5% from $106.2 trillion in 2022.
- U.S. asset managers controlled 55% of global AUM, amounting to approximately $65.8 trillion in 2023.
- Europe's asset management industry oversaw €25.8 trillion in AUM as of end-2023, representing 21% of global total.
- The asset management industry's global revenue reached $280 billion in 2023.
- Average revenue margin for asset managers was 20.5 basis points on AUM in 2023.
- U.S. asset managers generated $160 billion in fee revenue in 2023.
- The asset management industry employed 650,000 people globally in 2023.
- U.S. asset management sector jobs numbered 280,000 in 2023.
- Europe employed 170,000 in asset management in 2023.
- Global AUM expected to grow at 5.5% CAGR to $145 trillion by 2025.
- U.S. AUM projected to reach $75 trillion by 2028.
- Europe AUM growth forecast at 4% annually through 2027.
- U.S. dominates with 45% global revenue share in 2023.
- Europe holds 28% of global AUM, concentrated in Luxembourg and Ireland.
- Asia-Pacific accounts for 18% of world AUM, led by Japan and China.
The global asset management industry manages massive wealth, growing significantly with passive and active strategies competing.
Employment
- The asset management industry employed 650,000 people globally in 2023.
- U.S. asset management sector jobs numbered 280,000 in 2023.
- Europe employed 170,000 in asset management in 2023.
- Asia-Pacific AM workforce reached 120,000 professionals in 2023.
- Investment analysts comprised 25% of AM workforce, or 162,500 people in 2023.
- Portfolio managers numbered 85,000 globally in 2023.
- Compliance officers in AM industry totaled 65,000 in 2023.
- Sales and client relations staff: 130,000 worldwide in 2023.
- Technology roles in AM grew to 50,000 jobs in 2023.
- U.S. financial advisors employed by AM firms: 120,000 in 2023.
- UK fund management staff: 35,000 in 2023.
- India's AM industry employed 25,000 people in 2023.
- China AM sector workforce: 80,000 in 2023.
- Women represented 42% of AM workforce globally in 2023.
- Average salary for portfolio managers: $250,000 in U.S. 2023.
- Employee turnover rate in AM: 12% in 2023.
- Diversity index improved to 35% non-white employees in U.S. AM in 2023.
- Remote work adoption: 40% of AM staff in 2023.
- Training investment per employee: $5,000 annually in 2023.
- Gen Z entry-level hires: 15% of new AM jobs in 2023.
- ETF specialists jobs grew 20% to 20,000 in 2023.
- ESG analysts: 15,000 globally in 2023.
- C-suite executives in AM: 5,000 worldwide in 2023.
Employment Interpretation
In a global industry where 162,500 analysts scrutinize the markets and 85,000 portfolio managers try to steer the ship, it turns out the real growth areas are convincing clients (130,000 strong), appeasing regulators (65,000 compliance officers), and desperately hiring tech and ETF talent, all while hoping that a $5,000 training budget and 40% remote work policy will keep the 12% of people quitting each year from becoming 13%.
Growth
- Global AUM expected to grow at 5.5% CAGR to $145 trillion by 2025.
- U.S. AUM projected to reach $75 trillion by 2028.
- Europe AUM growth forecast at 4% annually through 2027.
- Asia ex-Japan AUM to double to $20 trillion by 2030.
- Passive AUM share to hit 50% by 2025.
- Alternatives AUM projected to $23 trillion by 2026.
- ETF AUM forecast to $15 trillion globally by 2025.
- Sustainable AUM to reach $53 trillion by 2025.
- Robo-advisors AUM growth at 25% CAGR to $4 trillion by 2027.
- Private markets AUM to grow 12% annually to 2028.
- U.S. retirement assets growth 6% CAGR to 2030.
- China AM AUM to RMB 100 trillion by 2027.
- Emerging markets AUM share to rise to 15% by 2030.
- Digital assets AUM to $10 trillion by 2030.
- Multi-asset strategies growth at 7% CAGR.
- Thematic investing AUM to triple by 2028.
- Outsourced CIO AUM growth 15% YoY.
- Model portfolios AUM to $5 trillion by 2025.
- Direct indexing AUM to $1 trillion by 2026.
- Tokenized assets market to $16 trillion by 2030.
- U.S. 529 plans AUM growth 8% annually.
- Global wealth transfer to fuel 10% AUM growth.
- Inflation to boost real assets AUM 9% CAGR.
Growth Interpretation
The future of asset management is a high-velocity race where relentless passive flows, a sustainable revolution, and digital innovations are all converging to create a staggering global wealth ecosystem that even your grandchildren's robo-advisor will find impressive.
Market Size
- The global asset management industry managed $119.7 trillion in assets under management (AUM) at the end of 2023, up 12.5% from $106.2 trillion in 2022.
- U.S. asset managers controlled 55% of global AUM, amounting to approximately $65.8 trillion in 2023.
- Europe's asset management industry oversaw €25.8 trillion in AUM as of end-2023, representing 21% of global total.
- Asia-Pacific region's AUM grew to $24.5 trillion in 2023, driven by emerging markets.
- Passive management strategies accounted for 48% of global AUM, reaching $57.3 trillion in 2023.
- Active management AUM stood at $62.4 trillion globally in 2023, comprising 52% of total industry AUM.
- ETFs captured $11.5 trillion in AUM worldwide by end-2023, with 10% annual growth.
- Mutual funds managed $58.2 trillion globally in 2023.
- Alternative assets under management hit $17.1 trillion in 2023, up 9% YoY.
- Private equity AUM reached $7.8 trillion globally in 2023.
- Hedge funds managed $4.3 trillion in AUM as of Q4 2023.
- Real estate investment AUM totaled $10.7 trillion worldwide in 2023.
- U.S. ETF AUM grew to $8.1 trillion in 2023.
- China's asset management AUM exceeded RMB 60 trillion ($8.4 trillion) in 2023.
- UK asset management industry AUM was £9.0 trillion at end-2023.
- Japan's public funds AUM stood at ¥240 trillion in 2023.
- Canadian asset managers oversaw CAD 2.8 trillion in 2023.
- Australia's superannuation industry AUM hit AUD 3.9 trillion in 2023.
- India's mutual fund AUM reached INR 50 lakh crore ($600 billion) in 2023.
- Brazil's asset management AUM was BRL 6.5 trillion in 2023.
- Global pension assets under management totaled $56 trillion in 2023.
- Sovereign wealth funds managed $11.3 trillion in AUM end-2023.
- Family offices worldwide controlled $5.8 trillion in investable assets in 2023.
- Robo-advisors AUM surpassed $1.5 trillion globally in 2023.
- Sustainable investment AUM reached $30 trillion worldwide in 2022, growing into 2023.
- High-net-worth individuals' managed assets hit $86 trillion globally in 2023.
- U.S. 401(k) plans AUM was $7.4 trillion in 2023.
- Global money market funds AUM stood at $6.5 trillion in 2023.
- Fixed income AUM comprised 25% of global total, or $30 trillion in 2023.
- Equity funds AUM was $28 trillion globally in 2023.
Market Size Interpretation
With a staggering $119.7 trillion under its care, the global asset management industry is a behemoth delicately balanced between the relentless, cost-efficient tide of passive strategies and the enduring, if pressured, human ambition of active management, all while wrestling with the explosive growth of everything from ETFs in America to pensions worldwide.
Regional
- U.S. dominates with 45% global revenue share in 2023.
- Europe holds 28% of global AUM, concentrated in Luxembourg and Ireland.
- Asia-Pacific accounts for 18% of world AUM, led by Japan and China.
- Latin America AUM represents 3% globally, with Brazil at forefront.
- Middle East AUM grew 15% to $2.5 trillion in 2023.
- Africa’s asset management AUM at $1.2 trillion in 2023.
- Luxembourg domiciled funds AUM: €5.5 trillion in 2023.
- Ireland UCITS AUM: €4.2 trillion end-2023.
- Japan’s GPIF AUM: ¥225 trillion in 2023.
- Singapore asset managers AUM: SGD 5 trillion in 2023.
- Hong Kong AUM: HKD 35 trillion in 2023.
- Australia’s industry funds AUM: AUD 1.5 trillion.
- Canada pension plans AUM: CAD 2.5 trillion.
- India AUM growth 30% YoY to INR 61 trillion.
- South Africa unit trusts AUM: ZAR 700 billion.
- UAE sovereign funds AUM: $1.6 trillion.
- Saudi Arabia PIF AUM: $925 billion in 2023.
- Switzerland private banks AUM: CHF 2.5 trillion.
- Netherlands pension AUM: €1.7 trillion.
- Germany fund AUM: €3.5 trillion domiciled.
- France insurance-linked AUM: €2 trillion.
Regional Interpretation
The global asset management landscape reveals a familiar yet shifting hierarchy: the U.S. flexes its financial muscle with nearly half the world's revenue, Europe's powerhouses Luxembourg and Ireland serve as the continent's formidable vaults, Asia-Pacific is the ambitious and rapidly ascending challenger, while the Middle East's sovereign wealth is quietly amassing a staggering fortune, proving that even in finance, the sun never sets on someone's empire.
Revenue
- The asset management industry's global revenue reached $280 billion in 2023.
- Average revenue margin for asset managers was 20.5 basis points on AUM in 2023.
- U.S. asset managers generated $160 billion in fee revenue in 2023.
- European fund management fees totaled €120 billion in 2023.
- Passive strategies generated $95 billion in revenue globally in 2023.
- Active equity management revenue was $110 billion worldwide in 2023.
- ETF fee revenue hit $45 billion in 2023.
- Alternative assets fee income reached $140 billion in 2023.
- Private equity management fees were $70 billion globally in 2023.
- Hedge fund industry fees totaled $85 billion in 2023.
- U.S. mutual fund revenues amounted to $130 billion in 2023.
- Asia-Pacific asset management revenues grew 15% to $50 billion in 2023.
- Net operating income for top 500 managers was $200 billion in 2023.
- Cost-income ratio for asset managers averaged 65% in 2023.
- Profit margins for largest managers reached 35% in 2023.
- Revenue from ESG products surged 25% to $25 billion in 2023.
- Robo-advisor fee revenue was $6 billion globally in 2023.
- Performance fees in alternatives were $40 billion in 2023.
- Fixed income fund revenues totaled $60 billion in 2023.
- Equity ETF revenues grew to $30 billion in 2023.
- UK asset manager revenues were £55 billion in 2023.
- Chinese AM industry revenues hit RMB 500 billion in 2023.
- Global AUM growth contributed $1.2 trillion to revenue in 2023.
- Top 20 managers captured 40% of industry revenues in 2023.
- Operating expenses rose 8% to $180 billion industry-wide in 2023.
Revenue Interpretation
The asset management industry, having perfected the art of skimming a surprisingly hearty 20.5 basis points off a mountain of money, generated a colossal $280 billion in 2023 by proving that whether you bet on a passive index, a star stock-picker, a private equity wizard, or a robo-advisor, the house always gets its vig.
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