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

RankManagerCountryTotal assets
1BlackRockU.S.$4,324,088
2Vanguard GroupU.S.$2,752,919
3Allianz Global InvestorsGermany$2,392,531
4State Street GlobalU.S.$2,344,789
5Fidelity InvestmentsU.S.$2,159,845
6J.P. Morgan ChaseU.S.$1,601,983
7Bank of New York MellonU.S.$1,582,982
8AXA GroupFrance$1,532,156
9Capital GroupU.S.$1,338,805
10BNP ParibasFrance$1,325,176
11Deutsche BankGermany$1,270,602
12Prudential FinancialU.S.$1,107,029
13UBSSwitzerland$1,095,904
14AmundiFrance$1,069,771
15Goldman Sachs GroupU.S.$1,042,000
16HSBC HoldingsU.K.$921,000
17Northern Trust Asset Mgmt.U.S.$884,473
18Franklin TempletonU.S.$879,139
19Natixis Global Asset Mgmt.France$867,193
20Wellington Mgmt.U.S.$834,405

Source: P&I/Towers Watson World 500

Click here to read the full research: http://www.towerswatson.com/DownloadMedia.aspx?media={243C7C33-8F7C-4C33-ACFD-B4625A41541D}

 

 

ABOUT THE AUTHOR
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 16 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.

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