ASIA, 29 October 2018 – Total assets under management (AuM) of the world’s largest 500 managers grew to US$ 93.8 trillion in 2017, representing a rise of 15.6% on the previous year, according to the latest Global 500 research from Willis Towers Watson's Thinking Ahead Institute. In addition, the concentration of assets managed by the 20 largest managers reached the highest level since inception (in 2000), and now account for over 43% of the top 500 managers’ total AuM.
The research, which takes into account data up to the end of 2017, shows that AuM for Asia Pacific managers in the global ranking totalled US$8.1 trillion, up 17% on the year. The increases in AUM for managers in Europe (including U.K.) and North America were 15.8% and 15.1% respectively. The growth in assets managed by managers in Asia Pacific exceeded the growth rate of Europe, North America and the broader group of 500 firms.
Jayne Bok, Head of Investments, Asia Pacific said: “Asia, ex-Japan, equities experienced the best performance over 2017. The strong equity returns helped boost the growth in managers’ AuM with a higher exposure to Asia. Investors should consider diversifying sources of return in constructing a portfolio that can withstand a wide range of economic environments.”
Within Asia Pacific, Japan at US$4.5 trillion represents the largest share of the assets managed by managers domiciled in Asia Pacific, followed by Australia with US$1.3 trillion. Assets managed by mainland Chinese managers amounted to approximately US$1.1 trillion in 2017, which would rise to US$1.2 trillion if the AuM of four Hong Kong managers (US$135 billion) is included. There is a new entrant from Malaysia.
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.
Jayne noted: “Once again, total assets have increased and the rate of growth in 2017 is the biggest since 2009. The names at the top of the ranking are familiar names, with 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.”
According to the research, more than four out of five (81%) 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.
Jayne added: “There is a confluence of global megatrends – including technological, demographic, economic, environmental and social pressures – that are combining to create a period of potentially massive disruption for the industry. These trends have implications for every aspect of the asset manager’s structure. Successfully responding to these realties may prove to be as much a test of character and culture as it is a test of traditional business and investment skills. Culture can be difficult to preserve as a firm gs, but it is crucial as the bedrock on which a competitive advantage is sustained over the long-term.”
The world's largest money managers
Ranked by total assets under management, in U.S. millions, as of 31 Dec 2017
| Rank | Manager | Country | Total assets |
|---|---|---|---|
| 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
The top 20 largest money managers domiciled in Asia Pacific
Ranked by total assets under management, in U.S. millions, as of 31 Dec 2017
| Global Rank | Manager | Market | Assets |
|---|---|---|---|
| 29 | Sumitomo Mitsui Trust Holdings | Japan | $791,467 |
| 37 | Nippon Life Insurance | Japan | $701,396 |
| 39 | Mitsubishi UFJ Financial Group | Japan | $663,782 |
| 46 | Asset Management One | Japan | $520,400 |
| 57 | Nomura Asset Mgmt. | Japan | $371,212 |
| 58 | Macquarie Group | Australia | $368,912 |
| 62 | Meiji Yasuda Life Insurance* | Japan | $327,188 |
| 63 | Shinkin Central Bank* | Japan | $326,060 |
| 78 | Sumitomo Life Insurance* | Japan | $256,320 |
| 90 | Samsung Group | South Korea | $205,272 |
| 97 | Colonial First State | Australia | $170,829 |
| 98 | Resona Holdings | Japan | $170,813 |
| 109 | China Asset Mgmt. | China | $153,023 |
| 110 | NAB Asset Mgmt.** | Australia | $152,900 |
| 111 | Harvest Fund Mgmt. | China | $151,807 |
| 146 | Mirae Asset Financial Group | South Korea | $97,013 |
| 158 | Hanwha Group | South Korea | $86,769 |
| 159 | Pacific Century Group | Hong Kong | $85,300 |
| 160 | China Universal Asset Mgmt. | China | $84,261 |
| 166 | IFM Investors | Australia | $78,781 |
Source: Pensions & Investments /Thinking Ahead Institute 500
* As of 31 March 2017
** As of 30 September 2017
Note: Information on asset managers in China was sourced from the available data
from AMAC and survey responses
Distribution of assets by market in Asia Pacific
Ranked by total assets under management in U.S. millions, as of 31 Dec 2017
| Market | Number of managers in the global ranking | Assets | Share of the global 500 |
|---|---|---|---|
| Japan | 18 | $4,516,999 | 4.81% |
| Australia | 22 | $1,309,879 | 1.40% |
| Mainland China | 20 | $1,093,674 | 1.17% |
| South Korea | 21 | $776,974 | 0.83% |
| India | 8 | $241,377 | 0.26% |
| Hong Kong | 4 | $135,033 | 0.14% |
| Malaysia | 1 | $9,848 | 0.01% |
| TOTAL | 94 | $8,083,784 | 8.62% |
Source: Pensions & Investments /Thinking Ahead Institute 500
About the Thinking Ahead Institute
The Thinking Ahead Institute is a global not-for-profit member organisation whose aim is to influence change in the investment world for the benefit of savers. The Institute’s members comprise asset owners, investment managers and other groups that are motivated to influence the industry for the good of savers worldwide. It has 45 members with combined responsibility for over US$12 trillion and is an outgrowth of Willis Towers Watson Investments’ Thinking Ahead Group.
About Willis Towers Watson
Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has over 40,000 employees serving more than 140 countries. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance.
