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, conducted in conjunction with Pensions & Investments, a leading U.S. investment newspaper, 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%.
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.
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