Asia’s wealth managers have seen their growth slow during 2020 compared to previous years, when Japan and China topped their global peers.
A rethink is needed in Asia’s wealth management industry so it can execute net-zero mandates and comply with upcoming regulatory measures, the Thing Ahead Institute said in a new report on the world’s largest wealth managers.
«If wealth managers in Asia want to continue the meteoric rise of the past, they need to create more diversity and resilience in both their business models and their portfolios» Jayne BokHead of Investments, Asia, at Willis Towers Watson, said.
She added that incorporating ESG practices into their investments will be critical to the future resilience of their portfolios and whether or not they will outperform their global peers in the years to come.
USA dominates
Assets under management (AUM) across the world’s top 500 wealth managers hit a record $119.5 trillion, according to the report co-authored with Willis Towers Watson and Pensions & Investments. As of the end of 2020, this represents an increase of 14.5 percent over the previous year’s $104.4 trillion.
Blackrock maintained its position as the largest money manager in the ranking, followed by Vanguard at second place for the seventh straight year.
Of the top 20 names, 14 are US managers, accounting for 78.6 percent of the top 20 AUM. Overall, passive investments account for 26 percent, an increase of 16.2 percent compared to a 15.4 percent growth in actively managed assets under management.
More concentration, competition
The report highlighted the growing concentration among the top 20 managers, whose market share rose to 44 percent of total assets over the period.
Attention was also drawn to the accelerating pace of competition, consolidation and rebranding, with 221 names now missing from the 2011 list.
APAC’s largest wealth manager
Ranking by total assets under management in millions of US dollars as of December 31, 2020.
2020Asiarank |
2020Globalrank |
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 |
Wealth Management One |
Japan |
$526,064 |
7 |
64 |
Macquarie Group |
Australia |
$424,057 |
8th |
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 management |
China |
$320,046 |
12 |
84 |
Chinese Agricultural Bank |
China |
$259,844 |
13 |
87 |
Samsung group |
South Korea |
$254,912 |
14 |
94 |
China Asset Mgmt. |
China |
$243,973 |
fifteen |
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 stocks |
Japan |
$211,024 |