The Latest Global Asset Management Industry Statistics Explained
The global asset management industry’s AUM (Assets Under Management) is expected to exceed $145.4 trillion by 2025.
The statistic indicating that the global asset management industry’s Assets Under Management (AUM) are projected to surpass $145.4 trillion by 2025 suggests a substantial growth trend in the industry over the next few years. This estimate points to an increasing amount of financial assets being managed by asset management firms worldwide, reflecting both the expanding global economy and the growing demand for professional investment services. The anticipated growth in AUM signifies a significant opportunity for asset managers to capitalize on market trends, diversify investment portfolios, and drive returns for investors on a global scale.
In 2020, the worldwide asset management market was valued at $42.29 billion.
The statistic “In 2020, the worldwide asset management market was valued at $42.29 billion” indicates the total value of assets under management by asset management firms globally during the year 2020. Asset management involves the professional management of various types of assets, such as stocks, bonds, real estate, and commodities, on behalf of individual and institutional investors to generate returns and achieve financial goals. The $42.29 billion figure represents the combined value of assets managed by these firms, reflecting the widespread practice of entrusting financial professionals to oversee investments and portfolios to potentially grow wealth and optimize financial outcomes for clients across the world.
The UK had the highest share in Europe’s asset management market in 2019.
The statistic “The UK had the highest share in Europe’s asset management market in 2019” indicates that in that year, the United Kingdom held the largest portion of the market for managing investment assets among European countries. This suggests that the UK had the highest total value of assets under management compared to other European countries. This could be attributed to various factors such as the UK’s strong financial sector, a favorable regulatory environment for asset management, and the presence of major financial institutions in the country. This statistic highlights the UK’s significance in the European asset management industry and its role as a key player in managing investments on a regional scale.
Equity funds have been the most popular investment type in the global asset management industry.
The statistic suggests that equity funds, which invest primarily in stocks or shares of companies, have been the preferred choice for investors in the global asset management industry. This popularity likely stems from the potential for higher returns that equities offer compared to other investment types such as bonds or money market funds. Investors are drawn to equity funds for their growth potential and the opportunity to capitalize on the performance of the stock market. Additionally, the increasing availability and variety of equity funds, along with the ease of access through various investment platforms, may have contributed to their popularity among investors seeking growth and long-term capital appreciation in their investment portfolios.
The asset management industry is expected to witness substantial growth in the Asia Pacific region, particularly in India and China.
The statistic suggests that the asset management industry in the Asia Pacific region, specifically in India and China, is projected to experience significant expansion in the foreseeable future. This growth is likely driven by various factors such as increasing domestic wealth, rise in middle-class population, and robust economic development in these countries. Furthermore, the growing interest of investors in financial markets and the shift towards more sophisticated investment strategies are expected to contribute to the growth of the asset management industry in the region. This trend implies lucrative opportunities for asset management firms looking to expand their operations and cater to the evolving financial needs of investors in the Asia Pacific market, particularly in India and China.
Passive funds’ share of global fund assets increased to 23% in 2019 from just 14% in 2009.
The statistic indicates that the proportion of global fund assets held in passive funds has been steadily increasing over the past decade, rising from 14% in 2009 to 23% in 2019. This shift signifies a growing trend among investors towards passive investment strategies, where funds are designed to simply track a specific market index rather than actively picking individual investments. The rise in the share of assets in passive funds suggests a greater preference for a more hands-off approach to investing, driven by factors such as lower fees, greater diversification, and the belief in the long-term efficiency of markets. This trend also reflects the ongoing debate between active and passive investing, with passive strategies gaining popularity due to their potential for cost-effectiveness and more predictable returns over time.
In the U.S, asset management market size was $49.3 trillion in 2020.
The statistic that the asset management market size in the U.S was $49.3 trillion in 2020 indicates the total value of financial assets under management by various entities such as investment firms, pension funds, and insurance companies. This value represents the collective wealth managed by these organizations on behalf of clients and investors, encompassing a wide range of asset classes including stocks, bonds, real estate, and alternative investments. The significant size of the asset management market in the U.S highlights the importance of financial markets and investment activities in the country’s economy, reflecting the scale of funds being allocated and managed by professionals in the industry.
Asset management companies are expected to increase their investments in technology by 4.6% annually till 2025.
This statistic suggests that asset management companies are projected to incrementally boost their technological investments by 4.6% each year leading up to 2025. This increase reflects a growing recognition within the industry of the value and importance of technology in enhancing operational efficiency, client services, and overall competitiveness. The upward trend in technology spending indicates a strategic shift towards digital transformation within asset management firms, as they seek to leverage innovative technologies such as artificial intelligence, blockchain, and data analytics to optimize investment strategies, streamline processes, and stay ahead in an increasingly digital-driven landscape.
ESG (Environmental, Social, and Governance) investments are expected to double to $53 trillion in AUM by 2025.
The statistic indicates that investments in ESG (Environmental, Social, and Governance) criteria, which take into account sustainability and ethical factors alongside financial returns, are predicted to grow significantly over the next few years. Specifically, the assets under management (AUM) in ESG investments are projected to double to $53 trillion by 2025, signaling a substantial increase in the adoption and recognition of ESG principles by investors globally. This growth suggests a growing awareness and emphasis on incorporating non-financial metrics in investment decision-making processes, driven by factors such as increasing sustainability concerns, regulatory changes, and evolving investor preferences towards more responsible and impactful investing strategies.
The percentage of female professionals in the global asset management industry is around 23%.
The statistic that the percentage of female professionals in the global asset management industry is around 23% indicates that women are underrepresented in this field compared to men. This suggests an imbalance in gender diversity within the industry, with a significantly larger proportion of professionals being male. This statistic reflects broader trends of gender disparity in finance and highlights the need for initiatives and policies to promote greater gender equality and inclusivity in asset management careers. Efforts to increase female representation can lead to a more diverse and inclusive workforce, which has been shown to improve decision-making, innovation, and performance within organizations.
The global asset allocation funds market was valued at $1.76 trillion in 2020.
The statistic “The global asset allocation funds market was valued at $1.76 trillion in 2020” indicates the total market size of funds that are managed with a strategic mix of different asset classes, such as stocks, bonds, and cash equivalents, to achieve specific investment goals. Asset allocation funds are popular investment vehicles that offer diversification and risk management to investors. The $1.76 trillion valuation suggests a significant amount of capital is allocated to these funds globally, reflecting their importance in the investment landscape. This figure serves as a key metric for tracking and analyzing trends in the asset allocation funds market and can be used by investors, fund managers, and policymakers to make informed decisions.
Fintech’s AUM in the asset management industry is projected to increase to $1.26 trillion by 2023.
This statistic indicates that the Assets Under Management (AUM) of financial technology (fintech) firms within the asset management industry are forecasted to grow significantly, reaching a total value of $1.26 trillion by the year 2023. This projected increase implies that fintech companies are expected to play an increasingly significant role in managing investments and financial assets on behalf of their clients. The growth in AUM suggests a growing demand for fintech solutions in the asset management sector, potentially driven by factors such as technological advancements, increased digitalization, and changing consumer preferences. Overall, this statistic highlights the expanding presence and influence of fintech within the asset management industry over the coming years.
The global real estate investment market, a key component of the asset management industry, was worth $9.6 trillion in 2019.
The statistic stating that the global real estate investment market was valued at $9.6 trillion in 2019 highlights the significant economic importance of the real estate sector within the asset management industry worldwide. This indicates the substantial amount of capital being allocated towards real estate assets by investors seeking potential returns and diversification opportunities. The sheer magnitude of this figure underscores the vast scale and scope of real estate investment activities taking place across various geographic regions and property types. This statistic reflects real estate’s status as a major asset class that plays a crucial role in global financial markets and investment portfolios.
ETFs managed over $5 trillion in assets in 2020 globally from admission funds.
This statistic indicates that Exchange-Traded Funds (ETFs) collectively oversaw more than $5 trillion in assets globally during the year 2020. ETFs are investment funds that are traded on stock exchanges, often tracking an index or a specific asset class. The impressive amount of assets managed by ETFs highlights their popularity among investors seeking diversification, liquidity, and cost-effectiveness in their portfolios. This growth in ETF assets under management also reflects the increasing adoption of passive investing strategies and the ongoing trend towards investing in a more transparent and accessible manner across various financial markets worldwide.
In 2020, Asset owners globally held $103 trillion in assets, up from $89 trillion in 2010.
The statistic indicates that the total value of assets owned by asset owners worldwide increased from $89 trillion in 2010 to $103 trillion in 2020. This represents a significant growth of $14 trillion over the decade, reflecting an upward trend in wealth accumulation among asset owners. This increase may be attributed to various factors such as economic growth, favorable market conditions, increased investment activities, and other global developments that have influenced the value of assets held by individuals, companies, institutions, and other entities. The rise in asset ownership suggests a broader expansion of wealth and financial resources across the global landscape during the specified period.
Around 64% of adults in the US have invested in some form of asset management.
The statistic “Around 64% of adults in the US have invested in some form of asset management” indicates that a significant majority of adult individuals in the United States have participated in activities related to managing their assets, such as investing in stocks, bonds, real estate, or other financial instruments. This suggests that a sizable portion of the population is actively engaged in wealth-building and financial planning strategies beyond traditional savings accounts. The high percentage implies a widespread interest in leveraging financial assets to potentially grow wealth and secure future financial stability among US adults.
Globally, investors collectively pay asset managers approximately $230 billion in management fees each year.
The statistic highlights the substantial amount of money that investors around the world pay to asset managers in the form of management fees annually, totaling approximately $230 billion. This figure underscores the significant financial impact of these fees on investors’ investment returns. Asset managers provide a range of services aimed at managing and growing investors’ portfolios, and in return, they charge fees for their expertise and services. Understanding the magnitude of these fees is crucial for investors to assess the overall costs associated with their investments and to evaluate the value they receive in return for these fees.
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