While the world has faced economic uncertainty, the global asset management industry has quietly ballooned to a staggering $120 trillion, a financial titan growing faster than the global economy itself.
Key Takeaways
- Global asset management industry AUM reached $111.1 trillion at the end of 2021, up 12% from 2020 driven by market appreciation and modest net inflows
- The industry is projected to grow to $145.4 trillion in AUM by 2025 at a CAGR of 5.4% from 2020, fueled by aging populations and low interest rates
- Asset management revenues hit $270 billion globally in 2022, representing a 7% increase YoY with margins averaging 35 basis points on AUM
- Global AUM surpassed $120 trillion in 2023, with equities comprising 37% of total AUM
- Fixed income AUM stood at $29.5 trillion globally in 2022, representing 26% of total industry AUM amid rising interest rates
- ETFs and mutual funds managed $45.2 trillion in AUM worldwide as of mid-2023, growing 15% YoY due to passive investing surge
- North America holds 45% of global AUM at $54.2 trillion in 2023, led by US dominance with $48.5 trillion
- Europe managed $32.1 trillion in AUM end-2022, accounting for 28% of global total, with UK and France as key hubs
- Asia-Pacific AUM grew to $25.4 trillion in 2023, 21% of global share, driven by China's $12.8 trillion market
- BlackRock managed $9.57 trillion AUM as of Q3 2023, largest globally with 8% market share
- Vanguard Group held $8.6 trillion AUM in 2023, focusing on low-cost index funds with 90% passive assets
- State Street Global Advisors oversaw $4.1 trillion AUM end-2023, with ETFs at $1.2 trillion
- Passive investing now accounts for 48% of global AUM in 2023, up from 35% in 2016, driven by cost efficiency
- ESG assets under management hit $30 trillion globally in 2022, projected to reach $53 trillion by 2025 at 15% CAGR
- Digital assets AUM grew to $2.5 trillion in 2023, with crypto funds comprising 40%, amid regulatory progress
The global asset management industry continues robust growth, exceeding $120 trillion in assets under management.
Assets Under Management by Type
- Global AUM surpassed $120 trillion in 2023, with equities comprising 37% of total AUM
- Fixed income AUM stood at $29.5 trillion globally in 2022, representing 26% of total industry AUM amid rising interest rates
- ETFs and mutual funds managed $45.2 trillion in AUM worldwide as of mid-2023, growing 15% YoY due to passive investing surge
- Alternative assets AUM reached $17.1 trillion in 2023, up 12% from prior year, with private equity at 45% share
- Cash and money market funds AUM totaled $11.8 trillion globally in 2022, boosted by central bank rate hikes
- Hedge funds AUM stood at $4.3 trillion globally in 2023, with 7.8% average returns
- Real estate AUM reached $1.7 trillion in open-ended funds in 2023, plus $10 trillion in closed-end vehicles
- Equity AUM hit $42.8 trillion in 2023, 36% of total, buoyed by tech stock rally
- Bond ETFs AUM grew to $2.1 trillion globally by end-2023, 18% YoY increase
- Commodities AUM totaled $0.9 trillion in 2023, driven by gold and energy futures
- Infrastructure debt AUM reached $200 billion globally in 2023, 15% growth
- Multi-asset AUM totaled $15.6 trillion in 2023, 13% of total AUM
- High-yield bond AUM at $1.4 trillion end-2023, yields averaging 7.2%
- Sustainable equity funds AUM $5.2 trillion in 2023, 12% of equity total
- Pension fund AUM globally $55 trillion in 2023, 46% of total AUM
Assets Under Management by Type Interpretation
The global asset management industry, now a staggering $120 trillion behemoth, is a high-stakes carnival where everyone is frantically juggling tech stocks and bonds while trying to look dignified, as evidenced by the fact that nearly half of all this money is just pension funds nervously watching the show.
Emerging Trends
- Passive investing now accounts for 48% of global AUM in 2023, up from 35% in 2016, driven by cost efficiency
- ESG assets under management hit $30 trillion globally in 2022, projected to reach $53 trillion by 2025 at 15% CAGR
- Digital assets AUM grew to $2.5 trillion in 2023, with crypto funds comprising 40%, amid regulatory progress
- Robo-advisors managed $1.8 trillion AUM worldwide in 2023, 12% YoY growth targeting millennial investors
- Private markets AUM expected to grow 12% annually to $30 trillion by 2030, outpacing public markets
- AI-driven investment tools adopted by 65% of asset managers in 2023, enhancing alpha generation
- Tokenized assets on blockchain reached $0.5 billion AUM in 2023, projected to $10 trillion by 2030
- Sustainable investing mandates cover 40% of institutional AUM in 2023, up from 25% in 2020
- Direct indexing AUM grew to $500 billion in 2023, 30% CAGR since 2018
- 72% of asset managers plan to increase alternatives allocation by 2025, targeting 25% of portfolios
- 55% of asset managers using big data analytics in 2023 for risk management
- Fractional ownership platforms AUM $150 billion in 2023, real assets
- Climate transition strategies AUM $2.8 trillion in 2023, 9% growth
- Model portfolios adopted by 68% of advisors, $4 trillion AUM linked
- Decentralized finance (DeFi) protocols hold $80 billion TVL equivalent to AUM in 2023
Emerging Trends Interpretation
The global asset management industry is now a nimble, tech-savvy, and purpose-driven behemoth where cheap, passive index funds have become the comfortable couch of investing, while its restless mind feverishly tokenizes, fractionalizes, and algorithmically chases alpha, all while trying to save the planet and appease a generation that trusts robots more than bankers.
Market Size and Growth
- Global asset management industry AUM reached $111.1 trillion at the end of 2021, up 12% from 2020 driven by market appreciation and modest net inflows
- The industry is projected to grow to $145.4 trillion in AUM by 2025 at a CAGR of 5.4% from 2020, fueled by aging populations and low interest rates
- Asset management revenues hit $270 billion globally in 2022, representing a 7% increase YoY with margins averaging 35 basis points on AUM
- From 2016-2021, global AUM grew at 6.1% CAGR, outpacing global GDP growth of 3.2%
- The industry's profit pools expanded to $295 billion in 2023, with alternative assets contributing 25% of total profits
- Global AUM grew 9.5% in 2022 despite volatility, reaching $118.4 trillion per Thinking Ahead Institute
- Industry revenues averaged 28 bps of AUM in 2023, down from 30 bps in 2021 due to fee compression
- Net new money inflows totaled $3.2 trillion in 2023, highest since 2021, led by fixed income and alternatives
- Multi-asset strategies captured 22% of net inflows in 2023, $700 billion, amid uncertain markets
- Global AUM hit $124 trillion in 2023 per BCG, with 10.2% growth despite inflation
- Fee revenue declined 2% to $260 billion in 2023 due to passive shift, margins at 22 bps
- Emerging markets captured 18% of global net inflows in 2023, $1.1 trillion total
- Industry consolidation saw 150 M&A deals in 2023, value $120 billion
Market Size and Growth Interpretation
The global asset management industry is a relentless wealth machine, swelling to dizzying heights even when markets wobble, yet its masters are caught in a paradox of managing more money than ever while fighting to keep a slightly larger crumb of an ever-growing pie.
Regional Breakdown
- North America holds 45% of global AUM at $54.2 trillion in 2023, led by US dominance with $48.5 trillion
- Europe managed $32.1 trillion in AUM end-2022, accounting for 28% of global total, with UK and France as key hubs
- Asia-Pacific AUM grew to $25.4 trillion in 2023, 21% of global share, driven by China's $12.8 trillion market
- Latin America AUM reached $4.2 trillion in 2022, 3.5% global share, with Brazil contributing 60% at $2.5 trillion
- Middle East and Africa AUM totaled $3.8 trillion in 2023, growing 8% YoY led by UAE and Saudi sovereign wealth funds
- China AUM exploded to $15.2 trillion in 2023, 50% from mutual funds and 30% from trusts
- Japan managed $8.5 trillion AUM in 2023, 70% in domestic equities and bonds
- Australia AUM at $3.2 trillion end-2023, with superannuation funds holding 85%
- India asset management industry AUM crossed $600 billion in 2023, 25% YoY growth
- Canada AUM totaled $2.6 trillion in 2023, led by pension funds at $1.9 trillion
- Germany AUM at $4.1 trillion in 2023, largest in Europe after UK
- South Korea AUM reached $2.3 trillion in 2023, pension funds dominant
- Brazil AUM grew to $2.8 trillion in 2023, 40% in fixed income
- South Africa AUM $0.7 trillion in 2023, unit trusts at 25%
- Singapore hub AUM $1.9 trillion in 2023, family offices key
Regional Breakdown Interpretation
The global asset management stage is still dominated by North America's colossal $54.2 trillion show, but the plot is thickening with Asia-Pacific's ambitious subplot and sovereign wealth funds quietly building empires in the wings.
Top Firms and Performance
- BlackRock managed $9.57 trillion AUM as of Q3 2023, largest globally with 8% market share
- Vanguard Group held $8.6 trillion AUM in 2023, focusing on low-cost index funds with 90% passive assets
- State Street Global Advisors oversaw $4.1 trillion AUM end-2023, with ETFs at $1.2 trillion
- Fidelity Investments AUM reached $4.9 trillion in 2023, including $1.8 trillion in retirement assets
- Amundi, Europe's largest, managed €2.1 trillion ($2.3 trillion) AUM in 2023, up 10% YoY
- PIMCO AUM reached $1.9 trillion in 2023, specializing in fixed income with $1.2 trillion
- T. Rowe Price managed $1.5 trillion AUM end-2023, with active equities at 60%
- Invesco held $1.7 trillion AUM in 2023, ETFs contributing $500 billion
- UBS Asset Management oversaw $1.6 trillion AUM in 2023 post-Credit Suisse acquisition
- Legal & General Investment Management AUM at $1.4 trillion in 2023, UK-focused
- Capital Group AUM $2.6 trillion in 2023, active management focus
- Deutsche Bank AMC $1.1 trillion AUM end-2023, strong in Europe
- Schroders plc managed $900 billion AUM in 2023, sustainable focus
- Northern Trust Asset Management $1.2 trillion AUM 2023, institutional
- Franklin Templeton AUM $1.5 trillion post-Legg Mason, 2023
Top Firms and Performance Interpretation
In the global game of Monopoly that is asset management, a handful of firms—like BlackRock, Vanguard, and Fidelity—are not just passing 'Go' and collecting $200, but are essentially designing the board, printing the money, and quietly deciding which pieces the rest of us get to play with.
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