Global Asset Management Market 2024-2030

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    ASSET MANAGEMENT MARKET

     

    KEY FINDINGS

     

    • Increasing retiree population, increasing wealth of high-net-worth individuals, rising demand for alternative investments, and rising ETFs will drive the growth.
    • Europe continues to represent the second-largest market in the world, home to 27 percent of total assets under management, second to the United States, which represents 62 percent of the market.
    • AMC’s BlackRock and Vanguard continues to rule the market.

     

    INTRODUCTION TO ASSET MANAGEMENT MARKET

     

    The asset management industry is characterized by a strong global market concentration. While more than 4,200 companies operate in this sector in Europe alone, the 400 largest companies worldwide hold more than 80% of all assets under management.

     

    Digitization has given companies tremendous opportunities to strengthen their customer relationships. Asset-intensive companies have recognized that the success or failure of their company depends on resolving the challenges involved in their management in the face of intensifying competition.

     

    Several asset-intensive companies are therefore actively investing in sophisticated and imaginative strategies to dramatically change and upgrade their organizational processes. Asset managers are increasingly utilizing machine learning and blockchain technology to help eliminate cognitive biases in investment decisions and improve transparency.

     

    infographic: Asset Management Market, Asset Management Market Size, Asset Management Market trends and forecast, Asset Management Market Risks, Asset Management Market report

    The global asset management market size was valued at USD 216.98 billion in 2019. The main growth drivers of the market have been: the government-incentivised shift to individual retirement plans; the increase of high-net-worth-individuals (HNWIs) from emerging populations; and the growth of sovereign wealth funds (SWFs).

     

    One of the key factors limiting the growth of the industry is the high capital cost associated with implementing management solutions such as RTLS and RFID. But as the economies hit by pandemic covid19, wealth managers are forced to adopt new technology with cost effective measures.

     

    Also, rising demand for services provided by Fintech firms is expected to limit the market for traditional wealth management.

     

    ASSET MANAGEMENT MARKET DYNAMICS

     

    North America, the world’s largest asset management region, due to a combination of strong consumer spending, historically low unemployment, where Europe continues to represent the second-largest market in the world. In China, the second-largest single market after the US, AuM expanded by an almost 10% in 2019, driven largely by a strong retail investor segment.

     

    Retail clients were the fastest-growing segment, with assets rising by 19%, while institutional client assets grew around 13%.

     

    At the end of 2019, BlackRock was the largest asset management company worldwide with managed assets amounting to 7.43 trillion U.S. dollars, followed by Vanguard.

     

    infographic: Asset Management Market, Asset Management Market Size, Asset Management Market trends and forecast, Asset Management Market Risks, Asset Management Market report

     

    The COVID-19 crisis caused the assets under management of mutual funds distributed in US and Europe to shrink immensely in the first six months of 2020, March 2020 was the worst month for mutual funds, with more capital from funds distributed, withdrawn than in any of the worst months since 2008.

     

    Long-term flows have recovered significantly since March, as confidence in the market’s stability returned. Value-oriented active managers continued to face their own set of challenges, as the second-order effects of COVID-19 accelerated a decade-long trend of underperformance relative to growth managers.

     

    In the short term, the recent uncertainty of the market has made active investment prevalent. But in the long run, active investment is set to become less appealing and, owing to the downturn in the economy, more investors will shift toward passive investment and alternatives. As digital disruption models are evolving, demand for lower fee-based products are increasing.

     

    Personalization of services along with AI and blockchain implementation by big firms attracting millennials and the mass affluent.

     

    COVID IMPACT ON ASSET MANAGEMENT MARKET

     

    The long bullish period of the markets finally came to an end with the coronavirus closing in on the entire world in the onset of 2020. The market started getting volatile with economies shutting down and various governments imposing lockdowns which extended for months.

     

    This unique pandemic tossed most contingency plans out of the window as none were competent enough to deal with the unknown variables of a global pandemic.

     

    Many asset management firms may find it difficult to bring new clients on-board or even increase the investments made by current clients because of face-to-face meetings being quashed.

     

    With the ever so competitive market and the looming fear of clients shifting to passive and/or alternative investments, firms with weak digitized platforms and lagging customer relations face a serious issue.

     

    Forecast models and assumptions for the year are rendered useless as the economy has diverted far away from its normal trajectory for any given year. Valuations and NAV calculations prove to be difficult because of volatility, illiquidity, and unreliability.

     

    Moreover, calculations of the fair value of a company have become challenging, counterparty risks are more likely and insolvency looms over plenty of companies, thus making investing seem riskier than usual. 

     

    ASSET MANAGEMENT MARKET SIZE AND FORECAST

     

    The global asset management market size was valued at USD 216.98 billion in 2019.

     

    Competition in the industry remains fierce as concentration continues, and broad access to distribution platforms is vital, plus the ability to carve out a distinctive profile on those platforms.

     

    New players, especially Big Tech companies, are expected to enter the asset management arena, as they have done for banking.

     

    The convergence of technological, economic, and demographic trends will transform the wealth sector by 2021, unlocking enormous global wealth through a diverse investor universe. But these investors would also have growing aspirations and willingness, if their demands are not met, to move providers.

     

    In such a rapidly evolving marketplace, investment providers need to fully consider the expectations and behaviors of their customers and exploit technology to fulfill their changing needs.

     

    When online trading apps, such as Robinhood, have attracted millions of new retail customers during the pandemic, the firms like Vanguard, Blackrock drawn criticism for “gamifying” investing.

     

    They do worry that people are getting pulled in to day trading without fully understanding the risks. They think that no investor should be playing with their retirement savings for entertainment,

     

    ASSET MANAGEMENT MARKET RECENT DEVELOPMENT

     

    More than 100 enhancements and new features have been added to Enfusion, Inc.’s Order and Execution Management System (OEMS), a leading provider of cloud-native SaaS solutions for investment managers, as the asset management industry increasingly looks for solutions that address the challenges of managing complex daily order flow.

     

    BNP Paribas Asset Management (‘BNPP AM’), a technology-enabled service provider to the investment management sector, today announced that it will use Archer’s platform to launch its new separately managed account (SMA) and unified managed account (UMA) strategies.

     

    The new strategies enhance the availability of BNPP AM’s specialised investing solutions by utilising the technological prowess and operational infrastructure of Archer.

     

    Asset management for institutional investors is now available on Blockchain.com. According to reports, the new service, known as BCAM, will cater to family offices, institutions, and high-net-worth individuals.

     

    The programme known as BCAM will be available to institutions, family offices, and high-net-worth people, according to a statement published by Altis Partners. BCAM was established in partnership with Altis Partners, a futures portfolio manager that also oversees cryptocurrency investment portfolios.

     

    BCAM is powered by the Blockchain.com platform as its foundation.

     

    ASSET MANAGEMENT MARKET RECENT PRODUCT DEVELOPMENT AND INNOVATION

     

    A prestigious financial organization known for its unwavering dedication to low-cost investment options and client-centered financial solutions is Vanguard Asset Management Services. Vanguard, a pioneer in the asset management sector, was founded on the tenets of investor advocacy, openness, and long-term growth.

     

    Vanguard’s philosophy of passive investing, which is embodied by its well-known index funds and exchange-traded funds (ETFs), is fundamental to its strategy. These funds provide investors with broad exposure to different asset classes while maintaining exceptionally low expense ratios by monitoring market indices.

     

    The objective of Vanguard, which has continually distinguished it from rivals, is to assist clients in achieving their financial goals while minimizing costs. This strategy is in line with this aim. An important focus of Vanguard Asset Management Services is on empowering and educating investors.

     

    Clients can find a wealth of information on the institution’s website and in its publications to help them comprehend financial concepts, choose investments wisely, and make future plans. Vanguard has constantly strived to lower costs and pass the savings on to investors as part of its commitment to transparency in its fee structure.

     

    In addition, Vanguard’s distinctive company structure best represents its client-centric philosophy. Vanguard functions on behalf of the fund shareholders since it is a client-owned business, therefore its interests are congruent with those of its clients.

     

    By reducing the conflicts of interest that are frequently present in the financial sector, this structure promotes an atmosphere where long-term performance and client pleasure come first.

     

    Fidelity Investments, a well-known financial firm with a long history, offers a full suite of asset management and investing services under the brand name Fidelity Asset Management Solutions.

     

    This platform serves a wide spectrum of investors looking to maximize their financial goals through strategic and specialized investing methods, from individual individuals to institutional institutions. Fidelity Asset Management Solutions’ primary goal is to offer clients an all-encompassing approach to investment management.

     

    A wide range of investing alternatives, including mutual funds, exchange-traded funds (ETFs), individually managed accounts, and more, are offered via the platform by utilizing Fidelity’s substantial knowledge and research skills.

     

    These choices are made to fit a range of risk appetites, time horizons, and monetary objectives. A dedication to innovation and technologically advanced solutions is at the core of Fidelity Asset Management Solutions. The platform incorporates cutting-edge digital capabilities that give investors access to performance tracking, portfolio analysis, and real-time analytics.

     

    Customers can keep track of their assets, make informed choices, and modify their portfolios when market circumstances change thanks to Fidelity’s user-friendly online interface. The Asset Management Solutions product is fundamentally reliant on the team of seasoned investment professionals at Fidelity.

     

    These professionals offer individualized guidance, creating custom solutions that take into account clients’ particular situations and goals. Fidelity makes sure that clients are prepared to traverse complicated financial environments and make educated investment decisions by encouraging a collaborative partnership.

     

    Another distinguishing feature of Fidelity’s Asset Management Solutions is its emphasis on education. In addition to publications and research papers, the portal also provides webinars and workshops. This enables investors to improve their financial literacy, make wise decisions, and confidently negotiate the complexities of the investment industry.

     

    ASSET MANAGEMENT MARKET COMPETITIVE LANDSCAPE

     

    BlackRock:

    AUM: BlackRock reported assets under management of $8.68 trillion as of December 31 2020.

     

    BlackRock reported Q4 FY 2020 adjusted EPS that beat analyst expectations. Revenue for the quarter was also higher than expected.

     

    The world’s most popular cryptocurrency is seeing giant moves on a daily basis and could possibly unfold into a global market, the firm’s chief investment officer, thinks that “it’s going to be part of the asset suite for investors for a long time.” In December 2020, BlackRock has authorized two of its funds to invest in bitcoin futures. BlackRock’s two funds will trade only in those bitcoin futures that trade on exchanges registered with the Commodity Futures Trading Commission.

     

    Vanguard:  

    AUM: In January 12 2021, Vanguard’s assets under management have surged beyond the $7tn. Vanguard is the world’s second largest asset manager after BlackRock. Technology was the biggest contributor to performance for both the Large-Cap Index Fund and the Growth Index Fund for them as per December 2020 reports. The Value Index Fund benefited most from its stocks in health care and industrials.

     

    By means of an investment advisory partnership with China’s Ant Group, a joint venture that acquired 500,000 customers in less than a year, Vanguard aims to replace the Chinese asset losses in time.

     

    Fidelity:

    AUM: $3.3 trillion as of 2020.

     

    Fidelity is an asset manager and a discount broker with more than 27 million customers. It offers an online platform for individual investors to buy and sell securities, and also manages entire portfolios on behalf of clients. In the summer of 2018, it made headlines when it began offering mutual funds with a zero-expense ratio and minimum investment requirement. The company oversees more than 27 million workplace retirement plans, and nearly 9 million household accounts.     

     
    Sl no Topic
    1 Market Segmentation
    2 Scope of the report
    3 Abbreviations
    4 Research Methodology
    5 Executive Summary
    6 Introduction
    7 Insights from Industry stakeholders
    8 Cost breakdown of Product by sub-components and average profit margin
    9 Disruptive innovation in the Industry
    10 Technology trends in the Industry
    11 Consumer trends in the industry
    12 Recent Production Milestones
    13 Component Manufacturing in US, EU and China
    14 COVID-19 impact on overall market
    15 COVID-19 impact on Production of components
    16 COVID-19 impact on Point of sale
    17 Market Segmentation, Dynamics and Forecast by Geography, 2024-2030
    18 Market Segmentation, Dynamics and Forecast by Product Type, 2024-2030
    19 Market Segmentation, Dynamics and Forecast by Application, 2024-2030
    20 Market Segmentation, Dynamics and Forecast by End use, 2024-2030
    21 Product installation rate by OEM, 2023
    22 Incline/Decline in Average B-2-B selling price in past 5 years
    23 Competition from substitute products
    24 Gross margin and average profitability of suppliers
    25 New product development in past 12 months
    26 M&A in past 12 months
    27 Growth strategy of leading players
    28 Market share of vendors, 2023
    29 Company Profiles
    30 Unmet needs and opportunity for new suppliers
    31 Conclusion
    32 Appendix
       
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