The world’s largest wealth managers grow to over $131 trillion


The world’s 500 largest wealth managers had total assets under management (AUM) of $131.7 trillion at the end of 2021 – a 10.2 percent increase from the previous year.

A study conducted by the Thinking Ahead Institute and Pensions & Investments found that the top 20 wealth managers held $59.5 trillion in wealth, up 13 percent.

BlackRock remained the world’s largest wealth manager with $10.01 trillion in assets, followed by Vanguard Group ($8.47 trillion), Fidelity Investments ($4.23 trillion), State Street Global (4, $14 trillion) and JPMorgan Chase ($3.11 trillion).

The United States dominated the top 20 ranking, with 15 US managers making up 81.9 percent of the top 20 AUM, while European managers made up the remainder.

Macquarie Group was the top-ranked Australian company at #55 with $545.70 billion, ahead of IFM Investors at #157 ($130.57 billion), AMP Capital at #159 ($128.99 billion) , MLC Asset Management at 160th ($127.70 billion) and Pendal Group at 184th ($101.00 billion).

Other Australian companies in the top 250 were Challenger at 211 ($79.79 billion), Magellan Asset Management at 232 ($69.29 billion), Perpetual at 234 ($69.98 billion). dollars), Pinnacle Investment at 239th ($67.86 billion) and QIC at 242nd ($67.05 billion).

The Thinking Ahead Institute and Pensions & Investments found that due to consolidation and competition, 218 names that were in their rankings 10 years earlier are now gone.

“Investment managers face a combination of long-term headwinds from macroeconomic, geopolitical and climate risks, but are also spurred on by the drivers of technology and industry innovation. This is a tale of dark clouds on the horizon, possibly accompanied by a powerful engine room of innovation,” said Marisa Hall, co-director of the Thinking Ahead Institute.

“Consolidation is an obvious symptom of a changing investment industry, but bigger isn’t always better. Specialization is still in demand as true boutiques and smaller global managers prove that differentiating for the right reasons can be just as powerful a business model as offering standardization.”

Passive investments increased 12.1 percent year-on-year to 29.1 percent of total assets under management, while active investments increased 9.5 percent.

The average asset allocation in 2021 was 46.5 percent to equities, 33.9 percent to fixed income, 6.6 percent to cash, 5.9 percent to alternative investments, and 7.1 percent to other strategies.

Meanwhile, assets allocated according to ESG principles increased by 4.4 percent to over 60 percent of assets in 2021.

“Sustainable investing remains a prevalent theme in the Australian market, with asset owners increasingly focused on asset managers’ stewardship activities and transparency in sustainability reporting,” said Simon James, Head of Credit at WTW Australia.

“Wealth managers large and small continue to invest in people and technology to meet these demands.”

The world’s largest wealth managers grow to over $131 trillion

The top 500 managers have set a new record for assets under management.

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Last updated: October 18, 2022

Released: October 18, 2022

Jon Bragg

Jon Bragg

Jon Bragg is a journalist for Momentum Media’s Investor Daily, nestegg and ifa. He enjoys writing about a variety of financial topics and issues and exploring the many implications they have on all aspects of life.


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