Global assets under management
In finance, global assets under management consists of assets held by institutional investors and individual investors around the world. For example, these institutional investors include asset management firms, pension funds, endowments, foundations, sovereign wealth funds, hedge funds, and private equity funds. In contrast, individual investors include ultra high-net-worth individuals (UHNWI), high-net-worth individuals (HNWI), the mass affluent, and other retail investors.
Assets by classification
[edit]Rank |
Fund type | US$ billion | Figures as of |
|---|---|---|---|
| — | Private wealth | $32,800 1[1][2] | 2008 |
| 1 | Pension funds | $62,000[3] | 2021 |
| 2 | Banks | $50,600[4] | 2013 |
| 3 | Insurance companies | $35,100[5] | 2020 |
| 4 | Mutual funds | $23,800[6] | 2011 |
| 5 | Real estate | $10,000[7][8] | 2006 |
| 6 | Foreign exchange reserves | $7,341[9] | February 2008 |
| 7 | Sovereign wealth funds | $3,980[10] | 2011 |
| 8 | Hedge funds | $2,845[11] | 2014 |
| 9 | Private equity funds | $1,600[12] | 2009 |
| 10 | REITs | $764[13] | 2007 |
| 11 | Family Offices | $140 - $420[4] | 2011 |
- ^1 Around one third of private wealth is incorporated in conventional investment management (Pension funds, Mutual funds and Insurance assets).
- ^2 Many surveys systematically overestimate the global wealth pool. This is because they fail to separate out assets that are inaccessible for wealth management services (e.g. pension assets, real estate, dedicated liquidity, etc.)[14]
Assets by region
[edit]| Assets by region, 2020[15] | ||
|---|---|---|
| Region | Value by region (in US$ billions) | |
| North America | 40,000 | |
| Europe | 20,000 | |
| Middle East | 6,000 | |
| Japan and Australia | 5,200 | |
| Asia (excluding Japan and Australia) | 5,200 | |
| Latin America | 2,000 | |
Assets by company
[edit]Key
[edit]- AM — Asset management firm
- FOREX — Foreign exchange reserves
- HF — Hedge fund
- MF — (Exchange Traded) Mutual fund
- PEN — Pension fund
- PE — Private equity firm
- SWF — Sovereign wealth fund
- UHNWI — (Billionaire) Ultra high-net-worth individual
Companies
[edit]| Investor Name | Type | Total assets (US$ billion) |
|---|---|---|
| BlackRock | AM | 12,000 |
| Charles Schwab Corporation | AM | 7,500 |
| The Vanguard Group | AM | 7,000 |
| People's Bank of China | FOREX | 3,700 |
| Fidelity Investments | AM | 3,600 |
| Allianz Asset Management (PIMCO + Allianz Global Investors) | AM | 3,400 |
| State Street Global Advisors | AM | 3,300 |
| Capital Group | AM | 2,300 |
| JPMorgan Chase | AM | 2,300 |
| BNY Mellon Investment Management | AM | 2,300 |
| Goldman Sachs | AM | 2,300 |
| Amundi | AM | 2,000 |
| Government Pension Investment Fund (Japan) | PEN | 1,370 |
| Bank of Japan | FOREX | 1,264 |
| Government Pension Fund - Global (Norway) | SWF | 893 |
| Government Pension Fund of Norway (Norway) | PEN | 856 |
| Civil Service Retirement and Disability Fund (United States) | PEN | 832 |
| Abu Dhabi Investment Authority (Abu Dhabi) | SWF | 773 |
| SAMA Foreign Holdings (Saudi Arabia) | SWF | 757 |
| Saudi Arabian Monetary Authority | FOREX | 745 |
| UBS Asset Management | AM | 680[16] |
| China Investment Corporation (China) | SWF | 653 |
| SAFE Investment Company (China) | SWF | 567 |
| Swiss National Bank | FOREX | 531 |
| Central Bank of the Russian Federation | FOREX | 429 |
| Stichting Pensioenfonds ABP (Netherlands) | PEN | 427 |
| National Pension Service (South Korea) | PEN | 400 |
| Canada Pension Plan Investment Board | AM | 278 |
| Barclays Inverse US Treasury Composite ETN (Blackrock) | MF | 211 |
| SPDR S&P 500 (State Street Global Advisors) | MF | 200 |
| Bridgewater Associates | HF | 78 |
| Bill Gates (Microsoft) | UHNWI | 76 |
| Carlos Slim (Grupo Carso/Telemex) | UHNWI | 72 |
| Core S&P 500 ETF (Blackrock) | MF | 70 |
| Man Group | HF | 65 |
| Amancio Ortega (Inditex Group) | UHNWI | 64 |
| Warren Buffett (Berkshire Hathaway) | UHNWI | 58 |
| iShare MSCI EAFE ETF (Blackrock) | MF | 54 |
| Total Stock Market ETF (the Vanguard Group) | MF | 50 |
| Larry Ellison (Oracle Corporation) | UHNWI | 48 |
| JP Morgan Asset Management | HF | 47 |
| Brevan Howard Asset Management | HF | 37 |
| TPG Capital | PE | 36 |
| the Carlyle Group | PE | 33 |
| the Blackstone Group | PE | 30 |
| Och-Ziff Capital Management Group | HF | 29 |
| Kohlberg Kravis Roberts (KKR) | PE | 28 |
| Warburg Pincus | PE | 26 |
Discretionary vs Non-Discretionary Assets
[edit]Global assets under management include both discretionary and non-discretionary assets. However, there are important differences between these two types of assets. Industry standards and guidance to distinguish the two types has been established by Global Investment Performance Standards (GIPS).[17] According to GIPS, discretion refers to the extent to which an organization, for example an asset manager, is permitted to manage the assets and implement its intended investment strategy on behalf of the asset owner. More specifically, discretion refers to the extent to which assets are permitted to be managed, and intended investment strategies are permitted to be implemented, through the decisions and actions of fund managers and general partners (GPs) at the asset manager.[18]
The asset owner ultimately owns the assets. For example, asset owners include institutional limited partners (LPs), such as endowments, foundations, pension funds, and sovereign wealth funds.[19] If restrictions and limitations imposed by the asset owner significantly hinder the organization from fully implementing the intended investment strategy, the assets may be considered non-discretionary. There are degrees of discretion and not all restrictions and limitations will necessarily result in assets being considered non-discretionary. For example, if an asset owner requires that the organization avoid any tobacco-related investments, the organization would first consider if this restriction hinders the implementation of the intended strategy. If it does, the organization would likely classify these assets as non-discretionary.
Global assets under advisement
[edit]A concept related to global assets under management in the investment industry is global assets under advisement (AUA). This measures the total market value of the assets that are advised by a financial institution, which is often an investment consultant or other intermediary. In general, the advisory firm does not have discretion to manage the assets. Rather, in a non-discretionary manner, it provides advice and makes recommendations as to how those assets may be managed.
See also
[edit]References
[edit]- ^ http://www.thecityuk.com/assets/Uploads/Fund-Management-2012.pdf[permanent dead link]
- ^ "As world wealth increased to $37.2 trillion in 2006" (PDF). Archived from the original (PDF) on 2008-09-10. Retrieved 2008-03-18.
- ^ "Asset and wealth management revolution 2024". pwc.com. Retrieved 2024-12-25.
- ^ a b "Viewpoint - Who Owns the Assets?" (PDF). blackrock.com. Retrieved 2024-12-25.
- ^ "Asset Management 2020 - A Brave New World" (PDF). pwc.com. Retrieved 2024-12-25.
- ^ TheCityUK - Fund Management 2012[permanent dead link]
- ^ The Future Size of the Global Real Estate Market[permanent dead link]
- ^ "The global real estate market is on pace to grow by nearly one half to $13.7 trillion". Archived from the original on 2008-09-07. Retrieved 2008-03-18.
- ^ Foreign exchange reserves of the world
- ^ Sovereign wealth funds grow to $3,980bn
- ^ "Global Hedge Fund Asset Report". Archived from the original on 2014-02-25. Retrieved 2014-02-25.
- ^ Preqin calculates horizon IRRs using cash flow data for over 1,700 private equity funds, comprising partnerships valued at more than $1.6 trillion in total.[permanent dead link]
- ^ "The total market capitalization of publicly listed REITs around the world reached US$764 billion, up 25% from the previous year". Archived from the original on 2008-03-14. Retrieved 2008-03-18.
- ^ Regaining momentum in wealth management - Roland Berger Strategy Consultants, page 15
- ^ http://www.agefi.fr/sites/agefi.fr/files/fichiers/2016/07/bcg-doubling-down-on-data-july-2016_tcm80-2113701.pdf [bare URL PDF]
- ^ UBS Asset Management Invested Assets as at 31 March 2015
- ^ "Guidance Statement on Composite Definition" (PDF). gipsstandards.org. Retrieved 2024-12-25.
- ^ "Oversubscribed - LPs - Endowments - Foundations - Pensions". oversubscribed.com. Retrieved 2024-12-25.
- ^ "Institutional LPs - Endowments - Foundations - Pension Funds". institutionallps.com. Retrieved 2024-12-25.
Sources
[edit]- IMF - Global asset allocation
- TheCityUK - Fund management[permanent dead link]
- Morgan Stanley - World's $165 trillion worth of traded securities
- http://www.sovereigninvestor.org Archived 2009-08-20 at the Wayback Machine The Sovereign Investment Council, a trade group for sovereign investors and financial firms that serve sovereign investment funds.