Top 500 investment managers see assets drop by $18 trillion

Rhea-AI Summary

Total assets under management (AuM) at the world’s 500 largest asset managers dropped by 13.7% in 2022, the first significant fall since 2008. North American asset managers saw a 14.2% decrease, while European managers experienced a 16.8% decrease. Investment in passively managed funds increased to 34.7% of the total, with active management accounting for 65.3%. Alternative investments increased to 7.1% of assets managed. BlackRock remains the world’s largest asset manager, but saw a drop in AuM.

Positive

• Investment in passively managed funds increased to 34.7% of total assets, up four percentage points from the previous year.
• Alternative investments increased to 7.1% of assets managed.
• BlackRock remains the world’s largest asset manager.

Negative

• Total assets under management (AuM) at the world’s 500 largest asset managers dropped by 13.7% in 2022, the first significant fall since 2008.
• North American asset managers saw a 14.2% decrease in assets.
• European asset managers experienced a 16.8% decrease in assets.
• BlackRock saw a drop in AuM from just over $10 trillion to just over $8 trillion in 2022.

ARLINGTON, Va., Oct. 23, 2023 (GLOBE NEWSWIRE) -- Total assets under management (AuM) at the world’s 500 largest asset managers amounted to $113.7 trillion at the end of 2022, according to new research from WTW’s Thinking Ahead Institute. This represents a 13.7% drop on the previous year, which is the first significant fall in assets managed since the global financial crisis of 2008.

Differences exist among regions. While Japanese managers within the world’s largest 500 fared much better than average with a 5.5% decrease in assets, North American asset managers saw a 14.2% decrease, and Europe (including the U.K.) experienced an above-average 16.8% decrease.

The research also reveals the continued evolution of active versus passive AuM among the largest investment managers. Investment in passively managed funds has come to account for 34.7% of the total as of 2022, up four percentage points from the previous year. Notably, among the world’s largest managers, this still leaves a considerable majority of 65.3% actively managed assets.

Among asset classes, the fall in equity and bond markets caused a gentle shift in weightings, with alternative investments increasing to 7.1% of assets managed. The market falls caused the combined equity and fixed-income allocation to decrease by 2.4 percentage points from a very stable 79% – 80% share over the past 10 years.

The falls in equities and bonds also impacted the degree of consolidation within the top 20 managers. It is very hard for extremely large managers to have an above-average exposure to less liquid asset classes, and so the top 20 were disproportionately hit by the mainstream market falls. The top 20 firms’ share of the total assets decreased from 45.2% in 2021 to 44.2% in 2022. Their total AuM decreased year-on-year to $50.3 trillion.

Turning to individual asset managers, the research shows that BlackRock remains the world’s largest asset manager, despite seeing a drop in AuM from just over $10 trillion to just over $8 trillion in 2022. The Vanguard Group is still significantly ahead of Fidelity Investments and State Street Global — ranked third and fourth, respectively — which each saw assets dip to below $4 trillion.

“Throughout 2022, amid significant turbulence, high inflation and interest rates, and geopolitical tension, investors faced losses that effectively erased most of the gains achieved during the record-breaking 2021,” said Jessica Gao, director at the Thinking Ahead Institute. “As we have conducted this research, a common theme throughout our conversations with managers has been to expect a higher-for-longer regime in interest rates in which concerns about inflation and growth remain elevated, suggesting investment managers are not out of the woods yet.

“The need to consider sustainability issues and adapt to systemic risk means forward-thinking and robust investment processes that are able to model and measure risks like never before. Looking ahead, this awareness of system-level risks could offer support to the investment world as it grapples with the generational challenge of climate change impacts and other sustainability issues.”

The world’s largest money managers
Ranked by total AuM, in US$ millions

Rank	Fund	Market	Total assets (US$ millions)
1.	BlackRock	U.S.	$8,594,488
2.	Vanguard Group	U.S.	$7,252,612
3.	Fidelity Investments	U.S.	$3,655,574
4.	State Street Global	U.S.	$3,481,473
5.	J.P. Morgan Chase	U.S.	$2,766,000
6.	Goldman Sachs Group	U.S.	$2,547,000
7.	Allianz Group	Germany	$2,285,496
8.	Capital Group	U.S.	$2,175,965
9.	Amundi	France	$2,031,753
10.	UBS	Switzerland	$1,845,000
11.	BNY Mellon	U.S.	$1,836,032
12.	Legal & General Group	U.K.	$1,444,393
13.	Invesco	U.S.	$1,409,204
14.	Franklin Templeton	U.S.	$1,387,686
15.	Prudential Financial	U.S.	$1,377,417
16.	T. Rowe Price Group	U.S.	$1,274,700
17.	BNP Paribas	France	$1,269,246
18.	Northern Trust	U.S.	$1,249,500
19.	Morgan Stanley Inv. Mgmt	U.S.	$1,234,226
20.	Natixis Investment Managers	France	$1,151,280

Notes to editors:

Figures were the latest available as of Dec. 31, 2022

About the Thinking Ahead Institute

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 over 55 members around the world and is an outgrowth of WTW Investments’ Thinking Ahead Group, which was set up in 2002.

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.

Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you.

Learn more at wtwco.com.

Media contacts

Ileana Feoli: +1 212 309 5504
Ileana.feoli@wtwco.com

Ed Emerman: +1 609 240 2766
Eemerman@eaglepr.com 

FAQ

What was the percentage drop in total assets under management (AuM) at the world’s 500 largest asset managers in 2022?

Total assets under management (AuM) at the world’s 500 largest asset managers dropped by 13.7% in 2022.

What percentage of total assets are invested in passively managed funds?

Investment in passively managed funds accounts for 34.7% of the total assets.

What percentage of assets are allocated to alternative investments?

Alternative investments account for 7.1% of assets managed.

Who is the world's largest asset manager?

BlackRock remains the world’s largest asset manager.