Concentration continues among the top 20 managers
ARLINGTON, VA, October 19, 2020 – Assets under management (AuM) at the world’s 500 largest asset managers exceeded $100 trillion for the first time in 2019 — totaling $104.4 trillion — according to new research from Willis Towers Watson’s Thinking Ahead Institute. This represents an increase of 14.8% on the previous year, when total AuM was $91.5 trillion, and an almost three-fold increase from $35.2 trillion in 2000.
The research, conducted in conjunction with Pensions & Investments, a leading U.S. investment newspaper, confirms growing concentration among the top 20 managers whose market share increased during the period to 43% of total assets, up from 38% in 2000 and 29% in 1995. It also shows that, in the past decade, 232 asset manager names have dropped out of the ranking.
“The investment industry has always been dynamic, but the pace of change is speeding up, manifested notably through consolidation,” said Roger Urwin, co-founder of the Thinking Ahead Institute. “In addition, rapidly advancing technology is changing the shape of mandates and producing products that require less governance and are more streamlined. This has led to the growth of passive and index tracking, factor-based strategies and solutions. Private markets have also continued a significant growth trend in the past decade, during which investors have sought higher returns involving higher risk.”
According to the research, passively managed assets in the survey grew to $7.9 trillion in 2019, up from $4.9 trillion in 2015.
“Most asset management processes, including investment, operating and decision making, also must evolve. This is driven by, in particular, asset owners seeking the benefits of outsourcing; the increased use of the Total Portfolio Approach, especially when targeting absolute return; and the use of index tracking in exchange-traded funds, where there is an active choice of the index,” said Urwin.
“The topics of conversation of asset managers are also changing, to reflect changes in client expectations as well as those of their colleagues and broader society. These are increasingly linked to purpose and culture; inclusion and diversity; and environmental, social and governance – and are taking place at the highest levels of these organizations,” said Marisa Hall, co-head of the Thinking Ahead Institute.
Ranked by total AuM, in U.S. millions, as of Dec. 31, 2019
| Rank | Fund | Market | Total Assets |
|---|---|---|---|
| 1 | BlackRock | U.S. | $7,429,632 |
| 2 | Vanguard Group | U.S. | $6,151,920 |
| 3 | State Street Global | U.S. | $3,116,424 |
| 4 | Fidelity Investments | U.S. | $3,043,134 |
| 5 | Allianz Group | Germany | $2,539,842 |
| 6 | J.P. Morgan Chase | U.S. | $2,364,000 |
| 7 | Capital Group | U.S. | $2,056,991 |
| 8 | BNY Mellon | U.S. | $1,910,000 |
| 9 | Goldman Sachs Group | U.S. | $1,859,000 |
| 10 | Amundi | France | $1,617,280 |
| 11 | Legal & General Group | U.K. | $1,568,891 |
| 12 | Prudential Financial | U.S. | $1,550,982 |
| 13 | UBS | Switzerland | $1,413,000 |
| 14 | BNP Paribas | France | $1,257,603 |
| 15 | Northern Trust | U.S. | $1,231,300 |
| 16 | Invesco | U.S. | $1,226,173 |
| 17 | T. Rowe Price | U.S. | $1,206,800 |
| 18 | Wellington Mgmt. | Canada | $1,154,735 |
| 19 | Morgan Stanley | U.S. | $1,131,824 |
| 20 | Wells Fargo | U.S. | $1,091,100 |
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The Thinking Ahead Institute was established in January 2015 and is a global not-for-profit investment research and innovation member group made up of engaged institutional asset owners and service providers committed to changing and improving the investment industry for the benefit of the end saver. It has 45 members around the world and is an outgrowth of Willis Towers Watson Investments’ Thinking Ahead Group, which was set up in 2002.
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*Excludes U.S.-based asset managers
