Nearly half of names on list a decade ago have since disappeared
ASIA, October 18, 2021 – Assets under management (AuM) at the world’s 500 largest asset managers have reached a new record of US$119.5 trillion, according to new research from the Thinking Ahead Institute. As of the end of 2020, this represents an increase of 14.5% on the previous year when total AuM was previously US$104.4 trillion.
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 44% of total assets.
Of the top 500 managers, 221 names which featured on the list a decade ago in 2011 are now absent in 2021, demonstrating a quickening pace of competition, consolidation and rebranding.
Blackrock has retained its position as the largest asset manager in the ranking, followed by Vanguard holding its second place position for the seventh consecutive year. Of the top 20, 14 are U.S. managers, accounting for 78.6% of the top 20 AUM. On the whole, passive investments represent 26%, an increase of 16.2% compared to a 15.4% growth in actively managed AUM.
Asset managers have also been addressing the growing demand from more sophisticated asset owners, for more complex and tailored investment solutions. Outsourced CIO, Total Portfolio Approach (TPA) and ETFs have all been popular sources of growth for the world’s top managers, to meet clients’ increasing requirements for returns.
Roger Urwin, co-founder of the Thinking Ahead Institute, comments: “We have witnessed unprecedented change within the investment industry – accelerated dramatically by the pandemic. In particular, sustainability is no longer just a luxury for some firms. Instead, during the pandemic, asset managers from all corners of the world have became even more aware of the interconnectedness of the financial system with society and the environment.”
According to the research, passively-managed assets under management among the largest firms grew to a total of US$8.3 trillion in 2020, up from US$4.8 trillion in 2016.
Roger Urwin adds: “Asset managers have always had the ambition to develop and innovate. We have seen this particularly with ESG mandates, which increased by 40% in 2020. The biggest contributor to this was the growth in ESG ETFs.”
Jayne Bok, Head of Investments, Asia, at Willis Towers Watson, says: “Asia’s asset managers experienced a slowdown in their growth over 2020, compared to previous years where Japan and China led the charge amongst their global peers. If asset manages in Asia want to continue the meteoric rise they’ve seen in the past, they will need to create greater diversity and resilience in their business models as well as within their portfolios.
A change of mindset needs to happen within the Asian asset management industry in order to execute on net zero mandates and adhere to upcoming regulatory measures. The inclusion of ESG practices into their investments will be critical to the future resilience of their portfolios and will determine whether or not they will out-perform their global peers in years to come.”
Additional research findings*:
| Rank | Fund | Market | Total Assets |
|---|---|---|---|
| 1 | BlackRock | U.S. | $8,676,680 |
| 2 | Vanguard Group | U.S. | $7,148,807 |
| 3 | Fidelity Investments | U.S. | $3,609,098 |
| 4 | State Street Group | U.S. | $3,467,467 |
| 5 | Allianz Group | Germany | $2,934,265 |
| 6 | J.P. Morgan Chase | U.S. | $2,716,000 |
| 7 | Capital Group | U.S. | $2,383,707 |
| 8 | BNY Mellon | U.S. | $2,210,574 |
| 9 | Goldman Sachs Group | U.S. | $2,145,000 |
| 10 | Amundi | France | $2,126,391 |
| 11 | Legal & General Group | U.K. | $1,736,402 |
| 12 | Prudential Financial | U.S. | $1,720,958 |
| 13 | UBS | Switzerland | $1,641,000 |
| 14 | Franklin Templeton | U.S. | $1,497,955 |
| 15 | Morgan Stanley | U.S. | $1,474,627 |
| 16 | T. Rowe Price | U.S. | $1,470,500 |
| 17 | Wells Fargo | U.S. | $1,455,000 |
| 18 | BNP Paribas | France | $1,430,900 |
| 19 | Northern Trust | U.S. | $1,405,300 |
| 20 | Natixis Investment Managers | France | $1,389,663 |
| 2020 Asia Rank | 2020 Global Rank | Fund | Market | Total Assets |
|---|---|---|---|---|
| 1 | 27 | Sumitomo Mitsui Trust Holdings | Japan | $1,059,802 |
| 2 | 33 | Mitsubishi UFJ Financial Group | Japan | $852,892 |
| 3 | 36 | Nippon Life Insurance | Japan | $739,067 |
| 4 | 53 | Nomura Asset Mgmt. | Japan | $568,128 |
| 5 | 55 | Dai-ichi Life Holdings | Japan | $551,429 |
| 6 | 58 | Asset Management One | Japan | $526,064 |
| 7 | 64 | Macquarie Group | Australia | $424,057 |
| 8 | 68 | Shinkin Central Bank | Japan | $380,492 |
| 9 | 70 | Meiji Yasuda Life Insurance | Japan | $374,949 |
| 10 | 74 | Sumitomo Life Insurance | Japan | $330,280 |
| 11 | 77 | E Fund Mgmt. | China | $320,046 |
| 12 | 84 | Agricultural Bank of China | China | $259,844 |
| 13 | 87 | Samsung Group | South Korea | $254,912 |
| 14 | 94 | China Asset Mgmt. | China | $243,973 |
| 15 | 96 | Bosera Asset Mgmt | China | $237,200 |
| 16 | 98 | Harvest Fund Mgmt | China | $230,453 |
| 17 | 102 | China Southern Asset Mgmt | China | $218,400 |
| 18 | 103 | CITIC Securities | China | $218,143 |
| 19 | 105 | ICBC Credit Suisse Asset Mgmt. | China | $216,026 |
| 20 | 108 | Resona Holdings | Japan | $211,024 |
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.
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 45,000 employees serving more than 140 countries and markets. 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. Together, we unlock potential.
