Key Highlights
- The global asset management industry managed approximately $106 trillion in assets as of 2022
- The European asset management industry accounted for around €27.7 trillion in assets under management in 2021
- US mutual funds held over $21 trillion in assets as of mid-2022
- Passive funds represent about 50% of the global ETF market assets as of 2023
- The number of active asset managers globally has decreased by approximately 20% over the past decade
- The average expense ratio for actively managed mutual funds in the US was 0.74% in 2022
- Fixed income assets accounted for about 45% of total global assets under management in 2022
- Millennials are expected to control around $68 trillion in assets globally by 2060
- The Asia-Pacific region’s asset management industry grew at a CAGR of 8% from 2010 to 2021
- ESG assets under management reached $35.3 trillion globally in 2022, representing 36% of all AUM
- The average fund size for ETFs globally increased to approximately $150 million in 2023
- The number of sustainable ETFs worldwide surpassed 500 by mid-2023
- Robo-advisors manage over $1 trillion in assets globally as of 2023
The asset management industry is navigating a transformative era, managing over $106 trillion globally in 2022, as it embraces cutting-edge technology, sustainable investments, and evolving investor demographics to fuel steady growth and unprecedented innovation.
Fund Types and Investment Strategies
- The average expense ratio for actively managed mutual funds in the US was 0.74% in 2022
- The median annual return for mutual funds in the US was approximately 8% over the past decade
- The percentage of active managers outperforming benchmarks has declined to about 24% over the past 10 years
- The total number of ETF launches globally in 2022 was over 1,000, reflecting increasing product innovation
- The average age of assets under management for hedge funds is approximately 3 years, reflecting relatively new investment strategies
Fund Types and Investment Strategies Interpretation
Industry Workforce and Demographics
- The number of active asset managers globally has decreased by approximately 20% over the past decade
- The proportion of women in senior roles within asset management firms increased to 30% in 2023, from 20% in 2019
- The average turnover rate for asset management firms is around 12% annually, affecting operational stability
- The average annual salary for asset management professionals worldwide is approximately $120,000, with regional variations
- The proportion of women in entry-level asset management roles has increased to 40% in 2023, reflecting improved diversity efforts
- The asset management industry’s total employment worldwide exceeds 400,000 jobs, representing a significant sector employer
Industry Workforce and Demographics Interpretation
Market Size and Assets Under Management
- The global asset management industry managed approximately $106 trillion in assets as of 2022
- The European asset management industry accounted for around €27.7 trillion in assets under management in 2021
- US mutual funds held over $21 trillion in assets as of mid-2022
- Passive funds represent about 50% of the global ETF market assets as of 2023
- Fixed income assets accounted for about 45% of total global assets under management in 2022
- Millennials are expected to control around $68 trillion in assets globally by 2060
- The Asia-Pacific region’s asset management industry grew at a CAGR of 8% from 2010 to 2021
- ESG assets under management reached $35.3 trillion globally in 2022, representing 36% of all AUM
- The average fund size for ETFs globally increased to approximately $150 million in 2023
- The number of sustainable ETFs worldwide surpassed 500 by mid-2023
- Robo-advisors manage over $1 trillion in assets globally as of 2023
- Institutional investors account for roughly 80% of global assets under management
- The CAGR for the global asset management industry is projected to be 6.5% from 2022 to 2027
- The number of registered investment funds in Europe exceeded 31,000 in 2022
- Digital assets and cryptocurrencies are increasingly included in asset management portfolios, accounting for about 2% of total AUM in 2023
- The median AUM per active asset manager globally is approximately $2 billion
- Asia-Pacific’s asset management industry is expected to reach $19 trillion in assets by 2025
- The United States accounts for about 25% of the global asset management industry’s total AUM
- The global mutual fund industry saw net inflows of approximately $300 billion in 2022
- 70% of institutional investors expect to increase allocations to ESG investments in the next five years
- The average fee for hedge fund management is approximately 1.5% of assets under management, plus 20% of profits
- The global pension fund assets under management exceeded $40 trillion in 2023
- Real estate assets account for about 13% of global AUM, totaling roughly $14 trillion as of 2022
- During 2022, the asset management industry experienced a net growth rate of approximately 5%, driven largely by inflows and market gains
- The average client retention rate for asset management firms is approximately 87% annually, indicating high customer loyalty
- The top 10 asset management firms manage over $20 trillion combined, representing roughly 20% of total global AUM
- The proportion of international assets managed by U.S.-based firms is approximately 35%, reflecting their global influence
- Around 60% of asset managers plan to increase investments in sustainable and impact investing by 2025
- The global fintech in asset management market size was valued at approximately $5 billion in 2022 and is projected to grow at a CAGR of 15% through 2030
- The ratio of retail to institutional assets under management is roughly 1:4 globally, highlighting the dominance of institutional investors
- Investment in alternative assets such as private equity, hedge funds, and infrastructure comprised about 10% of total AUM in 2022, worth approximately $10 trillion
- The total assets managed in private equity globally reached over $4 trillion in 2022, with an annual growth rate of around 8%
- The average AUM per client in private wealth management is approximately $5 million, indicating high-net-worth client focus
- The proportion of ESG funds included in global AUM increased from 15% in 2018 to over 36% in 2022, showcasing rapid growth in sustainable investing
- The adoption of blockchain technology in asset management is expected to grow at a CAGR of 20% through 2028, enhancing transparency and security
- The average client assets per financial advisor in asset management firms is estimated at around $250 million in 2023, illustrating the scale of client portfolios
- The growth rate of ETFs has outpaced mutual funds globally, with ETFs growing at about 20% annually, compared to 5% for mutual funds
- The global hedge fund industry managed approximately $3.4 trillion in assets as of 2022, with yearly inflows and performance gains contributing to growth
- The proliferation of green bonds in bond portfolios increased by over 40% in 2022, supporting sustainable development
- The total number of registered European investment funds has increased by 15% since 2019, indicating industry growth
- The median fund size for global mutual funds is around $250 million, with larger funds tending to outperform smaller peers
Market Size and Assets Under Management Interpretation
Regional and Country-Specific Insights
- The median age of a retail investor globally is approximately 44 years, indicating a mature investor base
- The number of asset management firms worldwide exceeds 11,000, with the majority located in North America and Europe
Regional and Country-Specific Insights Interpretation
Technological Advancements and Data Analytics
- The adoption of AI and machine learning in asset management increased by 60% between 2020 and 2023
- Cybersecurity incidents in the asset management industry increased by 30% in 2022, emphasizing the need for enhanced security measures
- The asset management industry’s digital transformation investment is projected to reach $50 billion worldwide by 2025, reflecting focus on modernization
- The percentage of assets managed through automated portfolio management solutions increased from 10% in 2020 to 25% in 2023, indicating rapid technological adoption
- Over 80% of asset managers have adopted ESG scoring and data providers as of 2023, reflecting industry-wide integration of sustainability metrics
- The digital client onboarding process has reduced client onboarding time by 30% for asset management firms, improving operational efficiency
- The use of big data analytics in asset management increased by 70% between 2020 and 2023, enhancing decision-making processes
- The adoption rate of machine learning algorithms for risk management in asset management firms increased by over 50% from 2020 to 2023, demonstrating technological advancements
Technological Advancements and Data Analytics Interpretation
Sources & References
- Reference 1STATISTAResearch Publication(2024)Visit source
- Reference 2EFAMAResearch Publication(2024)Visit source
- Reference 3SECResearch Publication(2024)Visit source
- Reference 4ETFResearch Publication(2024)Visit source
- Reference 5MORGANSTANLEYResearch Publication(2024)Visit source
- Reference 6ICIResearch Publication(2024)Visit source
- Reference 7BAINResearch Publication(2024)Visit source
- Reference 8PWCResearch Publication(2024)Visit source
- Reference 9ABOUTResearch Publication(2024)Visit source
- Reference 10BLOOMBERGResearch Publication(2024)Visit source
- Reference 11BUSINESSINSIDERResearch Publication(2024)Visit source
- Reference 12MARKETSANDMARKETSResearch Publication(2024)Visit source
- Reference 13MORNINGSTARResearch Publication(2024)Visit source
- Reference 14SPGLOBALResearch Publication(2024)Visit source
- Reference 15ETOROResearch Publication(2024)Visit source
- Reference 16HFIResearch Publication(2024)Visit source
- Reference 17WILLISTOWERSWATSONResearch Publication(2024)Visit source
- Reference 18CPOMAGAZINEResearch Publication(2024)Visit source
- Reference 19CIIResearch Publication(2024)Visit source
- Reference 20RESEARCHANDMARKETSResearch Publication(2024)Visit source
- Reference 21GRANDVIEWRESEARCHResearch Publication(2024)Visit source
- Reference 22NAPA-NETResearch Publication(2024)Visit source
- Reference 23PREQINResearch Publication(2024)Visit source
- Reference 24WEALTHMANAGEMENTResearch Publication(2024)Visit source
- Reference 25GLOBENEWSWIREResearch Publication(2024)Visit source
- Reference 26FINANCIALADVISORIQResearch Publication(2024)Visit source
- Reference 27HEDGEFUNDRESEARCHResearch Publication(2024)Visit source
- Reference 28ENVIRONMENTALLEADERResearch Publication(2024)Visit source
- Reference 29FORBESResearch Publication(2024)Visit source
- Reference 30GLASSDOORResearch Publication(2024)Visit source
- Reference 31BLSResearch Publication(2024)Visit source