Asset Management

2022 Fall In Markets Hits AuM For Top Asset Managers

Editorial Staff 27 October 2023

2022 Fall In Markets Hits AuM For Top Asset Managers

While it might seem obvious, the data shows how markets affected AuM last year and what the differences were for certain firms, and regions. The study also unpacks trends such as the shift from "active" to "passive" management.

Total assets under management at the world’s 500 largest asset managers amounted to $113.7 trillion at the end of 2022, a 13.7 per cent slide from 2021, according to a new research paper from the Thinking Ahead Institute

Although the slide to equity and bond markets in 2022 is well established by now, data gathered by the organisation underscores the specific impact of markets on firms around the world, including big brands such as BlackRock, Vanguard, UBS and Invesco. 

Within regions, the report said Japanese managers fared the best, sustaining a fall of 5.5 per cent; North American asset managers sustained a 14.2 per cent decrease and Europe (including the UK) experienced an above-average 16.8 per cent slide. 

Overall, managers in Asia-Pacific logged a relatively resilient year despite being affected by weaker currencies relative to the dollar, with their AuM decreasing by only 4.9 per cent.

In other data, the report found that investment in passively managed funds accounts for 34.7 per cent of the total, as of 2022, up 4 percentage points from the previous year. This highlights how a shift towards more “passive,” low-cost funds continues at the expensve of more “active” approaches – as seen by the continued expansion of exchange-traded funds.

Among asset classes, the fall in equity and bond markets caused a gentle shift in weightings with alternative investments increasing to 7.1 per cent of assets managed. 

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