Mega funds continue to dominate universe

Less then 1% of some 65,000 mutual funds sold globally controlled 45% of global assests of $23trn according to data to 30 June published by Propinquity, the strategic research and advice provider to asset managers.

Even more focused has been the impact of so-called mega funds, defined as those with total net assets of $5bn or more, which have been responsible for almost half, 48.1%, of the industry’s global growth in the past decade. That is just 634 funds, according to Propinquity’s research.

Most of these are sold in the US – 446 out of 634 – representing some $8.5trn out of $10.2trn in mega fund asests. The US market is particularly concentrated: these funds account for 68.7% of total mutual fund assets in that market. In Europe by contrast, such funds account for just 16.9% of assets.

Another trend spotted is the importance of passive funds in concentrating assets. As of the second quarter of 2016 passive funds made up about a quarter, 25.8% of global mega fund assets. But they made up just 15.1% of the overall global mutual fund universe.

As of Q2 2016, the average passive mega fund has $40.1bn in assets. The active mega fund averages $13.4bn, suggesting that economies of scale are biggest in passive strategies.

To read the full research click here: Propinquity-Mega-Funds-Q2-2016


Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

Read more from Jonathan Boyd

Close Window
View the Magazine

I also agree to receive editorial emails from InvestmentEurope
I also agree to receive event communications for InvestmentEurope
I also agree to receive other communications emails from InvestmentEurope
I agree to the terms of service *

You need to fill all required fields!