The Top 500 asset managers have reached a new US$131 trillion record and the top 20 asset managers in the world now oversee assets worth over US$59 trillion, according to research from the Thinking Ahead Institute.
BlackRock is the largest asset manager in the world and the first to manage more than US$10 trillion, according to the report. The Vanguard Group, which is rated second and has surpassed the US$8 trillion milestone, is far ahead of State Street Global and Fidelity Investments, which are placed third and fourth, respectively, and each has about US$4 trillion.
US managers account for 15 out of the 20 largest firms and around 82 per cent of these assets. The addition of US managers Wellington Management and Invesco to the top 20 has increased this share.
Thinking Ahead Institute co-head Marisa Hall says: “Investment managers are facing a combination of long-term headwinds from macro-economic, geopolitical and climate risks – but are also spurred on by the driving factors of technology and industry innovation. This is a story of dark clouds on the horizon, potentially matched by a powerful engine room of innovation.
“Consolidation is an obvious symptom of changing investment industry, but bigger is not always better. Specialism is still sought after with genuine boutiques and smaller global managers proving that standing out for the right reasons can be as strong a business model as offering standardisation.
“Asset managers are adapting as organisations and we see competitive pressures manifest in a reassessment of the skills and structures that drive success. For example, healthy scrutiny of sustainability claims is leading to enormous demand for climate and environmental specialists. Meanwhile, modern expectations for digital client service and a need for rigorous data-led investment processes separately drive total re-evaluations of operational technology. These trends mean we’re not just seeing a shift in the rankings – but also a shift in what it means to be a successful asset manager.”
The world’s largest money managers. Ranked by total AuM, in U.S. millions.
Total Assets (US$)
State Street Global
J.P. Morgan Chase
Goldman Sachs Group
Legal & General Group
T. Rowe Price Group
Morgan Stanley Inv. Mgmt.