Top 500 managers AuM up 12% in 2013

Top 500 managers AuM up 12% in 2013

  • Export:
Assets managed by the world’s largest 500 fund managers rose by almost 12% to reach a record $76.5trn as at December 31 2013, according to Pensions & Investments and Towers Watson World 500.

This surpasses the previous high of over $69 trillion set in 2007, and suggests that total assets have now more than doubled since 2002.

“2013 was clearly another good year for most large asset managers, regardless of the types of assets under management, resulting in it setting new records across the board," said Luba Nikulina, global head of research at Towers Watson Investment. 

"While it looks like an industry in rude health, there is no room for complacency given numerous on-going challenges including the medium-term outlook for the global economy where we see risks to global growth skewed to the downside. In addition asset managers, particularly large ones, are increasingly likely to come under scrutiny for their role in society and the value they add to investors’ portfolios net of fees.” 

Since 2003, assets managed by the leading passive managers have grown by over 12% annually compared to around 6% annually for the top 500 managers as a whole. In 2013 assets managed by the leading passive managers, grew by over 16% to reach a record high of over $10trn, up from $3trn a decade ago.

“The growth of passive assets globally is a direct result of more institutional investors acknowledging that success in active management, without significant governance capability, is less likely because of increased competition for seemingly ever-diminishing returns.

"At the same time there has been significant innovation in the passive space which has resulted in many low cost, systematic approaches across a range of asset classes, also known as smart beta,” said Luba Nikulina.

The research reveals that in the past ten years the number of independently owned asset managers in the top 20 has more than doubled and now account for the majority, overtaking both bank and insurer owned firms which have both declined in the same period. 

According to the research, US asset managers have increased their share of assets in the research from 41% to over 50% during the past decade, mainly at the expense of Swiss, Japanese and UK asset managers who have lost around 5%, 4% and 2% of market share* and now have 4%, 6% and 8% respectively. 

“The shape of the asset management industry has changed significantly in the past decade with fewer bank-owned managers in existence as they have been forced to focus on the pressing issues of risk reduction and capital adequacy. As such, during this time there have been a number of high-profile sales which have impacted where assets are domiciled, and the US has been the biggest beneficiary of this trend,” said Nikulina. 



  • Export:

Related Articles