The research shows North America-based managers represent the majority of assets (58.1%), although their share fell slightly in 2017, the first fall since 2008. European managers represent 31.8% of assets managed (the UK being 7.4%), Japan 4.8% and the rest of the world 5.2%. Assets in each region grew in 2017. While the majority of total assets (77.6%) are still managed actively, the share of passive assets has grown from 19.5% to 22.4% in the last five years. In 2017 passive assets grew 25%.
BlackRock remains the largest asset manager in the rankings, a position it has held since 2008 and Vanguard and State Street complete the top three for the fourth successive year.
Bob Collie, Head of Research at the Thinking Ahead Institute, noted: “Once again, total assets have increased; the rate of growth in 2017 is the biggest since 2009. The names at the top of the ranking are familiar names. There’s greater concentration in the biggest names. On the surface, the numbers might appear to tell a story of steady growth and of stability. But when you look at broader developments within and beyond the industry, there are signs that the industry is facing significant change.”
In an indication of future areas of focus, more than four out of five (81%) of managers surveyed reported an increase in client interest in sustainable investing, including voting, while nearly three quarters (74%) increased resources deployed to deal with technology and big data. Nearly two thirds of firms surveyed had increased the number of product offerings during 2017, while 60% reported an increase in the level of regulatory oversight according to the research.
Collie added: “It’s not just a focus on technology. There is a confluence of global trends – including demographic, economic, environmental and social pressures – that are combining to create a period of potentially massive disruption for the industry. The implications go well beyond the investment process. These changes affect business models, people models, operating models and distribution models as well. They will be felt in every corner of the organisation.
“Different firms are going to choose to respond to these challenges in different ways. Successfully responding to these new industry realities may prove to be as much a test of character and culture as it is a test of traditional business and investment skills.”
The world's largest money managers
Ranked by total assets under management, in U.S. millions, as of Dec. 31, 2017
1 BlackRock U.S. $6,288,195
2 Vanguard Group U.S. $4,940,350
3 State Street Global U.S. $2,781,693
4 Fidelity Investments U.S. $2,448,807
5 Allianz Group Germany $2,358,037
6 J.P. Morgan Chase U.S. $2,034,000
7 Bank of New York Mellon U.S. $1,892,941
8 Capital Group U.S. $1,778,134
9 AXA Group France $1,731,232
10 AMUNDI France $1,709,475
11 Goldman Sachs Group U.S. $1,494,000
12 Deutsche Bank Germany $1,453,321
13 BNP Paribas France $1,432,968
14 Prudential Financial U.S. $1,393,628
15 Legal & General Group U.K. $1,333,162
16 UBS Switzerland $1,254,401
17 Northern Trust Asset Mgmt U.S. $1,161,000
18 Wellington Mgmt. U.S. $1,080,307
19 Wells Fargo U.S. $1,040,900
20 Natixis Global Asset Mgmt France $997,849
Source: Pensions & Investments /Thinking Ahead Institute 500
Global 500 Research report
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