The Latest Asset Management Industry Statistics Explained
The United States is the world’s largest market for asset management, accounting for 53% of the global industry.
The statistic indicates that the United States dominates the global asset management industry by accounting for 53% of its market share. This means that more than half of the world’s assets under management are within the United States. Given the size and complexity of the US financial markets, as well as the presence of numerous large institutional investors and high-net-worth individuals, it is not surprising that the country holds such a significant portion of the global asset management industry. This statistic underscores the leading role that the United States plays in the global financial landscape and highlights the importance of the country’s market in driving global investment decisions and strategies.
In 2018, around 89% of the asset management industry’s net revenues originated from traditional asset management activities.
The statistic indicates that in 2018, the majority of the asset management industry’s net revenues, approximately 89%, were generated from traditional asset management activities. Traditional asset management activities typically involve managing portfolios of stocks, bonds, and other traditional securities on behalf of clients. This suggests that a significant portion of the industry’s revenue came from fees charged for managing these types of assets. It highlights the continued importance and profitability of traditional asset management strategies within the industry during that time period.
The Asset Management industry is moving towards digital transformation, with 79% of firms planning to invest in advanced analytics in 2021.
The statistic indicates a significant trend within the Asset Management industry where the majority of firms (79%) are recognizing the importance of digital transformation and are gearing up to invest in advanced analytics technology in 2021. This shift towards advanced analytics signifies a strategic move by firms to leverage data-driven insights for decision-making, risk management, and client services. By embracing digital transformation, asset management firms are likely aiming to enhance operational efficiencies, improve investment strategies, and ultimately deliver better outcomes for clients. This statistic underscores the industry’s proactive approach to adapting to technological advancements and harnessing data analytics capabilities to stay competitive in an increasingly digital landscape.
The global asset management industry is estimated to reach approximately $65.59 Trillion by 2023.
The statistic stating that the global asset management industry is estimated to reach approximately $65.59 trillion by 2023 reflects the significant growth and increasing importance of this sector in managing investments and financial assets on a worldwide scale. Asset management involves overseeing a diverse range of assets such as stocks, bonds, real estate, and other financial instruments to achieve optimal returns for investors. The projected growth in the industry demonstrates the growing demand for professional management of investments, as well as the increasing complexity and size of global financial markets. This statistic highlights the substantial value and impact that asset management services have in the global economy, with trillions of dollars being professionally managed to generate returns for various stakeholders.
The top five asset managers worldwide account for nearly 22% of the total assets under management.
This statistic suggests a high level of concentration in the global asset management industry, as the top five asset managers collectively control approximately 22% of the total assets under management worldwide. This means that a relatively small number of large firms hold a significant portion of the financial assets being managed globally. Such a concentration of assets among a few key players may have implications for market dynamics, competition, and potential systemic risks in the financial sector. Investors and regulators may want to closely monitor and assess the influence and activities of these top asset managers to ensure a healthy and well-functioning financial market.
As of 2021, more than 50% of global institutional investors plan to increase their investment in ESG (Environmental, Social, and Governance) assets over the next 12 months.
The statistic indicates that a majority (more than 50%) of institutional investors worldwide intend to boost their investments in ESG (Environmental, Social, and Governance) assets in the upcoming year. This trend suggests a growing interest and commitment among institutional investors towards sustainable and socially responsible investment options. The focus on ESG considerations reflects a broader movement in the financial industry towards incorporating non-financial factors into investment decisions, with the aim of generating long-term value while also promoting positive environmental and social impacts. The statistic signals a significant shift towards sustainable finance practices and underlines the increasing importance of ESG criteria in investment decision-making for institutional investors on a global scale.
ESG funds are expected to hold more than $53 trillion in assets, which is about a third of global assets under management, by 2025.
This statistic implies that Environmental, Social, and Governance (ESG) funds are projected to significantly increase their share of assets under management in the global financial market by 2025, with an estimated total exceeding $53 trillion. This rapid growth indicates a rising trend among investors to prioritize sustainability and ethical considerations when making investment decisions. As ESG criteria become more mainstream and incorporated into investment strategies, the expected surge in ESG fund assets signifies a fundamental shift towards responsible and impact-driven investing practices on a global scale. The statistic highlights the increasing importance and influence of ESG factors in shaping the future of the financial industry and reflects a growing awareness of the significance of sustainability within investment portfolios.
Approximately 69 percent of asset managers cited regulatory changes as the most significant challenge to their business in 2020.
The statistic indicates that a majority of asset managers, specifically around 69 percent, identified regulatory changes as the most significant challenge to their business in the year 2020. This suggests that regulatory factors, such as new rules and compliance requirements imposed by governing bodies, had a substantial impact on the operations and strategies of asset management firms during that period. The high percentage of asset managers highlighting regulatory changes as a major challenge reflects the importance and complexity of navigating the evolving regulatory landscape within the financial industry, and underscores the need for firms to adapt and comply with these changes in order to remain competitive and sustainable in the market.
On average, asset management firms in the United States manage $51.9 billion in assets.
The statistic ‘On average, asset management firms in the United States manage $51.9 billion in assets’ indicates the typical size of assets under management across a sample of asset management firms in the United States. This average figure suggests that the industry is characterized by a substantial scale of operations, with firms handling billions of dollars worth of assets. It provides insight into the overall market size and the level of financial responsibility entrusted to these organizations. The statistic also implies that the asset management sector in the United States is a significant player in the financial services industry, managing large pools of capital and playing a crucial role in investment and wealth management activities.
The Asia-Pacific asset management market is projected to achieve the highest growth rate of approximately 15% between 2018 and 2023.
This statistic indicates that the Asia-Pacific asset management market is anticipated to experience a substantial increase in size over the 5-year period from 2018 to 2023, with a projected growth rate of approximately 15%. This growth rate surpasses that of other regions and signifies a significant expansion and dynamism within the asset management industry in the Asia-Pacific region. Factors contributing to this high growth rate may include increasing wealth and investment opportunities within the region, as well as favorable economic conditions and regulatory environments. Investors and industry players should take note of this projection as it suggests promising potential for investment returns and market expansion in the Asia-Pacific asset management sector in the coming years.
ETFs (exchange-traded funds) held $5.4 trillion in assets globally as of December 2020.
The statistic that ETFs (exchange-traded funds) held $5.4 trillion in assets globally as of December 2020 indicates the significant growth and adoption of ETFs as an investment vehicle. ETFs are investment funds that are traded on stock exchanges, allowing investors to buy and sell shares throughout the trading day. The $5.4 trillion in assets held by ETFs reflects the total market value of all the assets held within these funds globally. This statistic suggests that ETFs have become a popular choice for investors seeking diversification, liquidity, and cost-effective exposure to various asset classes such as stocks, bonds, commodities, and more. The substantial size of assets held by ETFs underscores their importance in the investment landscape and their increasing dominance in the financial markets.
The demand for robo-advisors in the asset management industry could reach $5 trillion by 2025.
The statistic suggests that the demand for robo-advisors, automated online platforms that provide algorithm-based financial advice, is expected to increase significantly within the asset management industry, potentially reaching a total of $5 trillion by the year 2025. This projection indicates a growing preference among investors for the convenience, cost-effectiveness, and accessibility of robo-advisors in managing their assets. The increasing adoption of technology-based solutions in financial services, coupled with the potential benefits of automation and personalized investment advice, are driving the anticipated surge in demand for robo-advisors over the coming years. This statistic underscores the transformative impact that technology is having on the asset management sector, paving the way for substantial growth and innovation in the industry.
46% of asset and wealth managers plan to respond to the technological disruption of their industry by digitally transforming their businesses.
The statistic suggests that a significant portion of asset and wealth managers are recognizing the impact of technological disruption on their industry and are preparing to adapt by implementing digital transformation initiatives within their businesses. This proactive response indicates a strategic shift towards leveraging technology to improve efficiency, customer experience, and competitiveness in the market. By embracing digital transformation, asset and wealth managers aim to stay relevant in a rapidly evolving landscape, enhance their capabilities, and seize opportunities for growth and innovation driven by technological advancements.
Just 18% of fund managers in the global asset management industry are women.
The statistic “Just 18% of fund managers in the global asset management industry are women” indicates that there is a significant gender disparity within the field of asset management, with only a small fraction of fund managers being female. This suggests a lack of gender diversity within the industry, potentially leading to unequal opportunities and representation for women in decision-making roles related to managing investments. Addressing this underrepresentation of women in fund management is crucial for promoting diversity and inclusivity in the asset management sector and ensuring a more balanced representation of perspectives and experiences in investment decision-making processes.
Fixed Income, Currency, and Commodities (FICC) represented about 30% of global revenue for asset management in 2020.
The statistic that Fixed Income, Currency, and Commodities (FICC) represented about 30% of global revenue for asset management in 2020 indicates the significant contribution of trading in these financial markets to the overall revenue generated by asset management firms. FICC refers to the trading and management of fixed income securities, foreign exchange, and commodities. The fact that it accounts for approximately 30% of global revenue highlights the importance of these markets in driving profits for asset management companies. This statistic suggests that asset managers heavily rely on FICC activities to generate a substantial portion of their income, showcasing the role these financial instruments play in the investment landscape.
79% of asset managers see the client journey as the key driver to deliver a digital model in 2021.
The statistic “79% of asset managers see the client journey as the key driver to deliver a digital model in 2021” indicates that a significant majority of asset managers believe that understanding and enhancing the client experience throughout their interactions with the firm is critical in implementing a digital model for their operations in 2021. This statistic underscores the industry awareness that focusing on the client journey, from initial contact to ongoing engagement and service delivery, is essential for adopting and leveraging digital technologies effectively in order to meet client expectations and improve overall business performance within the asset management sector.
FinTech disruption is a significant concern for the asset management industry, with 68% of managers fearing losses up to 20% revenue due to fintech.
The statistic states that FinTech disruption is a major source of concern within the asset management industry, with 68% of managers expressing fear of potential revenue losses of up to 20% as a result of FinTech advancements. This indicates that a significant portion of industry professionals perceive FinTech as a disruptive force that has the potential to impact their revenue streams significantly. The statistic highlights the growing awareness of the transformative power of financial technology within the asset management sector, prompting managers to consider the implications and potential risks associated with technological advancements in the industry.
The global pension fund asset size reached nearly $32 trillion in 2020.
The statistic that the global pension fund asset size reached nearly $32 trillion in 2020 highlights the significant and growing importance of pension funds in the global financial landscape. This data point underscores the magnitude of financial resources managed by pension funds worldwide, reflecting the long-term savings and investment strategies put in place by individuals, companies, and governments to secure retirement income. The substantial size of global pension fund assets signals their potential impact on financial markets, economies, and social welfare systems, emphasizing the critical role they play in ensuring financial security and stability for future generations.
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