Concentration continues among the top 20 managers
GLOBAL, Monday 19 October, 2020 – Assets under management (AuM) at the world’s 500 largest asset managers exceeded US$100 trillion for the first time in 2019 - totalling US$104.4 trillion - according to new research from the Thinking Ahead Institute. This represents an increase of 14.8% on the previous year when total AuM was US$91.5 trillion and an almost three-fold increase from US$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 last decade, 232 asset manager names have dropped out of the ranking.
Roger Urwin, co-founder of the Thinking Ahead Institute, said: “The investment industry has always been dynamic, but the pace of change is speeding up, manifested notably through consolidation. 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 last decade, during which investors have sought higher returns involving higher risk.”
According to the research, passively managed assets in the survey grew to US$7.9 trillion in 2019, up from US$4.9 trillion in 2015.
Roger Urwin said: “Most asset management processes – including investment, operating and decision-making – are also having to evolve. This is being 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 ETFs, where there is an active choice of the index.”
Marisa Hall, co-head of the Thinking Ahead Institute, said: “The topics of conversation at 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, diversity and inclusion and ESG and are taking place at the highest levels of these organisations.”
Ranked by total assets under management, 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 |
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.
