Passive fund assets hit $10trn, study suggests

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Assets of passive managers have grown twice as fast as those of active managers over the past decade, to hit some $10trn, according to the latest Pensions & Investments/Towers Watson research.

Passive managers grew their assets by 12% annually against 6% for active managers.

However, active managers still oversee far more by way of assets in total; the 500 biggest managers measured this way had some $76.5trn under management as of the end of 2013, the study suggests.

The previous high was seen shortly before the global financial crisis in 2007, when total assets of the 500 biggest managers was estimated at $69trn. Overall, their assets have doubled since 2002.

Another key trend seen over the past decade has been the demise of bank owned asset management businesses. Banks have had to focus on reducing risk in their business models, as well as meeting new capital adequacy requirements. This has opened the way for more independent managers to be measured among the world’s biggest by AUM.

Geographically, the US has benefitted, as its share of global assets has increased to more than 50% from 41% over the past decade. By contrast, Swiss, Japanese and UK asset managers have lost ground.

The world’s largest money managers

Ranked by total assets under management, in US millions, as of Dec. 31, 2013

Rank Manager Country Total assets
1 BlackRock U.S. $4,324,088
2 Vanguard Group U.S. $2,752,919
3 Allianz Global Investors Germany $2,392,531
4 State Street Global U.S. $2,344,789
5 Fidelity Investments U.S. $2,159,845
6 J.P. Morgan Chase U.S. $1,601,983
7 Bank of New York Mellon U.S. $1,582,982
8 AXA Group France $1,532,156
9 Capital Group U.S. $1,338,805
10 BNP Paribas France $1,325,176
11 Deutsche Bank Germany $1,270,602
12 Prudential Financial U.S. $1,107,029
13 UBS Switzerland $1,095,904
14 Amundi France $1,069,771
15 Goldman Sachs Group U.S. $1,042,000
16 HSBC Holdings U.K. $921,000
17 Northern Trust Asset Mgmt. U.S. $884,473
18 Franklin Templeton U.S. $879,139
19 Natixis Global Asset Mgmt. France $867,193
20 Wellington Mgmt. U.S. $834,405

Source: P&I/Towers Watson World 500

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Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope.

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