top-500-asset managers
by Celero Playground
The world's largest 500 asset managers
A Thinking Ahead Institute and Pensions & Investments joint study | October 2023
Table of Contents
- Page 03 – Thinking Ahead Institute
- Page 04 – Executive summary
- Page 11 – Section 1: Total value of assets
- Page 28 – Section 2: Analysis of the largest 20 asset managers
- Page 35 – Section 3: Passive management
- Page 37 – Section 4: Manager insights on the industry
- Page 41 – Section 5: Definitions
- Page 44 – Section 6: TAI/ P&I 500 ranking
- Page 56 – Limitations of reliance
The Thinking Ahead Institute
The Thinking Ahead Institute (TAI) is a not-for-profit research and innovation network motivated to influence the investment industry for the good of savers worldwide and to mobilise capital for a sustainable future. Since its establishment in 2015, almost 90 investment organisations have collaborated to bring this vision to light through designing fit-for-purpose investment strategies, working towards better organisational effectiveness and strengthening stakeholder legitimacy.
The Thinking Ahead Group research team
- Marisa Hall
- Tim Hodgson
- Roger Urwin
- Jessica Gao
- Andrea Caloisi
- Isabella Martin
- Anastassia Johnson
Executive summary
Overview and key findings
Executive summary
Total discretionary assets under management (AUM) of the 500 managers included in the ranking amounted to USD 113.7 trillion at the end of 2022, down by 13.7% from the end of 2021.
BlackRock has held its position as the largest asset manager in the ranking since 2009, Vanguard has remained second in the last decade, and Fidelity Investments maintains its top three status for the third consecutive year.
AUM change by region: Japan saw a 5.5% decrease, followed by North America with a 14.2% decrease, and Europe (incl the U.K.) experienced a 16.8% decrease. Managers from the rest of the world category had a relatively more resilient year, with their AUM decreasing by 3.6%.
AUM for North America accounted for 59.5% of the total AUM in the top 500 managers, with USD 67.7 trillion at the end of 2022.
Top 500 managers amounted USD 113.7 trillion AUM at the end of 2022
Total AUM decreased by 13.7% compared to end of 2021
AUM decreased in all regions ranging from -16.8% to -3.6%
Executive summary
The top 20 managers' share of the total assets decreased from 45.2% in 2021 to 44.2% in 2022. Their total AUM decreased by 15.5% to USD 50.3 trillion.
There are 14 U.S. managers in the Top 20, accounting for 80.1% of the top 20 AUM, the rest are European managers.
Of the Top 20, over half of them (12) are independent asset managers, followed by banks (6) and insurer-owned managers (2).
Traditional equity and fixed income continued to make up most assets, accounting for 77.4% of all assets (45.1% equity and 32.3% fixed income). This represents a 2.4% decrease from the previous year.
Investment in passive strategies now accounts for 34.7% of the total, marking a 4.0% increase in its share of investments, while actively managed assets represent 65.3%, experiencing a 2.0% decrease compared to the previous year.
Top 20 managers' AUM share is 44.2%
Top 20 consists of 14 U.S. managers, the remaining being European
Passive investments participation in total investments increased by 4.0%
Key data
Assets managed by region (USD trillion)
- North America: $67.7
- Europe: $30.1
- Japan: $5.8
- Rest of the world: $10.1
Average asset allocation in 2022
- Equities: 45.1%
- Fixed income: 32.3%
- Cash and alternatives: 15.0%
- Other: 7.6%
Asset management industry trends
Macro uncertainty complicated by systemic risk
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Throughout 2022, major stock markets witnessed considerable turbulence and uncertainty, effectively erasing most of the gains achieved in the record-breaking year of 2021. High inflation and interest rates disrupted the markets worldwide, also influenced by heightened geopolitical tensions. While macro uncertainty remains high, a common theme was to expect a higher for longer regime in interest rates in which concerns about inflation and growth remain elevated.
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With the removal of tailwind conditions for asset values, the asset management business has had to deal with considerable stress with costs on a natural rise. This margin pressure has led to asset managers adopting bigger change profiles in which a focus on private markets, increased personalisation and use of technology are common strategies.
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The potential for a single event to trigger widespread market disruption remains a constant concern. Systemic risk puts emphasis on the need for forward thinking and re-positioning strategy with investment processes that are able to model, measure and adapt to systemic risk. Risk systems are under pressure to respond to these new circumstances. The investment environment has become increasingly complex, with a multitude of factors influencing investment decisions and investors having to navigate geopolitical events, technological developments and regulatory changes in addition to economic indicators.
Asset management industry trends
Sustainability stays top of mind
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Sustainability and ESG factors continue to be integral to investment programs, even though the journey is increasingly challenged with politicisation and increasing levels of regulation. Standardisation of sustainability reporting has been a theme and has received a boost from the ISSB issuing global sustainability disclosure standards. The other main theme is increasing attention given to climate risk and emissions reporting and management.
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Rightsizing of sustainability efforts has received more attention, with investment organisations needing to balance regulatory compliance, enabling positive sustainability impacts and navigating through the challenge of net-zero commitments, while also maintaining fiduciary integrity.
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Making the transition to a sustainable investment organisation critically needs strong culture and enhanced capabilities. Most investment organisations have an ESG knowledge and skills gap to fill and will have to improve ESG data practices to make it decision-useful.
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Stewardship is an important element of the new emerging investment model, where sustainability resourcing involves thinking through motivations, strategy and ambition. Collaboration within and across organisations can make available resources more productive and help achieve positive outcomes which for many asset managers includes real-world impact outcomes.
Asset management industry trends
Emerging influence of technology and AI
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There are promising technological advancements in the development of artificial intelligence (AI) and automation, which can benefit asset managers in building resilience and meeting current challenges. These technologies have potential to significantly improve efficiency and operational performance, giving leaders in this area an opportunity to build a strategic advantage. The use of generative AI and large language models (LLMs) has significantly enhanced the scope of technological application at asset manager organisations and in respect of their clients.
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There are many benefits AI brings to the investment industry; however, risks should also be considered and managed. Regulatory uncertainty, challenges in explaining and documenting the workings and outputs of complex models and ensuring appropriate governance around using such models are all new risks that require controls and frameworks to be managed effectively.
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Technology affects all asset management roles with likely redundancy over time particularly in the operational and distribution areas. The front-line investment professionals must adapt to the opportunities for technology to improve efficiency but are as yet less at risk from being replaced. The competition for talent in technology roles has rocketed. In this hypercompetitive landscape, attracting talent is evolving into a dynamic interplay of factors which include compensation, flexibility, but also empowerment and creating the right culture.
Section 1 | Total value of assets
Total value of assets managed
Split by manager domicile
| Year | North America | Europe (inc U.K.) | Rest of the world | Japan |
|---|---|---|---|---|
| 2013 | 42,020 | 26,340 | 3,508 | 4,560 |
| 2014 | 44,458 | 25,950 | 3,836 | 3,902 |
| 2015 | 43,990 | 24,655 | 4,166 | 4,023 |
| 2016 | 47,399 | 25,344 | 4,675 | 3,748 |
| 2017 | 54,549 | 29,275 | 5,418 | 4,517 |
| 2018 | 51,791 | 28,291 | 6,368 | 4,501 |
| 2019 | 62,321 | 29,789 | 6,655 | 5,623 |
| 2020 | 70,627 | 34,771 | 7,946 | 6,197 |
| 2021 | 78,877 | 36,199 | 10,524 | 6,127 |
| 2022 | 67,651 | 30,133 | 10,144 | 5,791 |
The AUM variation for managers in Europe (inc. the U.K.), North America and Japan were -16.8%, -14.2% and -5.5% respectively in 2022.
Assets managed by firms in the Rest of the world category decreased by 3.6% during 2022.
Total value of assets managed
Split by segment
| Year | Top 20 managers | Managers 21-50 | Managers 51-250 | Managers 251-500 |
|---|---|---|---|---|
| 2013 | 41.0% | 22.2% | 31.1% | 5.7% |
| 2014 | 41.6% | 22.8% | 29.5% | 6.1% |
| 2015 | 41.4% | 23.1% | 29.6% | 5.9% |
| 2016 | 41.9% | 22.8% | 29.4% | 5.9% |
| 2017 | 42.8% | 22.8% | 28.8% | 5.6% |
| 2018 | 42.1% | 21.9% | 30.0% | 5.9% |
| 2019 | 43.0% | 21.2% | 30.3% | 5.5% |
| 2020 | 44.0% | 21.2% | 29.3% | 5.4% |
| 2021 | 45.2% | 20.4% | 29.1% | 5.3% |
| 2022 | 44.2% | 20.6% | 29.6% | 5.6% |
The top 20 retained a substantial portion of the AUM, accounting for 44.2% of the total, a decrease from 2021.
Conversely, managers ranked 21 to 50 saw their AUM share increase from 20.4% in 2021 to 20.6% in 2022. This marks the first increase since 2015.
Similarly, managers ranked 51 to 250 and 251 to 500, saw their participation increase by 0.5% and 0.3% in 2022.
Evolution of median AUM
For 2022, there is a significant downturn, with the total AUM growth decreasing -13.7%.
Median AUM for the Top 500 landed at USD 56 trillion in 2022, down 9.4% since 2021.
Chart shows 500 Median AUM, 500 Growth, and Median growth from 2013 to 2022 (USD billion)
Distribution of assets by country
Five-year intervals (2012 to 2022, in USD)
The last decade has seen an increase in assets mostly from U.S., Canada, China, South Korea, India (33 bps), Hong Kong and Liechtenstein (18 bps). In contrast, many European countries and Japan have lost market share during this period.
2012: Australia 1.5%, Belgium 0.3%, Brazil 1.1%, Canada 3.9%, China 0.6%, France 7.7%, Germany 7.9%, Italy 2.2%, Japan 7.1%, South Korea 0.7%, Netherlands 2.4%, South Africa 1.2%, Spain 1.2%, Sweden 0.6%, Switzerland 4.3%, U.K. 7.4%, U.S. 48.7%, Other 1.3%
2017: Australia 1.4%, Belgium 0.1%, Brazil 0.9%, Canada 4.9%, China 1.7%, France 7.7%, Germany 5.8%, Italy 1.6%, Japan 4.8%, South Korea 0.8%, Netherlands 2.0%, South Africa 0.5%, Spain 0.7%, Sweden 0.5%, Switzerland 4.0%, U.K. 7.4%, U.S. 53.3%, Other 1.8%
2022: Australia 1.5%, Belgium 0.2%, Brazil 0.7%, Canada 5.4%, China 4.7%, France 5.9%, Germany 5.0%, Italy 1.4%, Japan 5.1%, South Korea 0.9%, Netherlands 1.5%, South Africa 0.4%, Spain 0.6%, Sweden 0.5%, Switzerland 4.0%, U.K. 6.2%, U.S. 54.1%, Other 2.1%
2017-2022 average annualised growth of AUM by market
USD terms vs. local currency (LC) terms
| Market | 5 yr CAGR to USD | 5 yr CAGR to LC |
|---|---|---|
| Brazil | 0.2% | 10.0% |
| U.K. | 0.3% | 2.5% |
| Eurozone | 2.1% | - |
| South Korea | 5.1% | 8.8% |
| Denmark | 1.8% | 4.1% |
| Liechtenstein | 6.8% | 5.6% |
| Switzerland | 3.8% | 2.6% |
| Japan | 5.1% | 8.5% |
| Australia | 5.3% | 8.2% |
| U.S. | 4.2% | 4.2% |
| Sweden | 0.8% | - |
| South Africa | 1.8% | - |
| Canada | 6.0% | 7.6% |
| Hong Kong | 8.4% | 8.9% |
| India | 9.1% | 14.9% |
| Norway | 11.1% | 15.2% |
| China | 27.0% | 28.6% |
Regions with a higher compound annual growth in Local Currency terms indicate depreciation of their currencies against the USD over the period 2017-2022.
Annualised change in exchange rates (LC against USD)
31 December 2017 to 31 December 2022
| Country | Annualised Change |
|---|---|
| Taiwan | -0.7% |
| Switzerland | +1.1% |
| U.K. | -2.2% |
| China | -1.2% |
| Euro countries | -2.3% |
| Denmark | -2.3% |
| Malaysia | -1.6% |
| Thailand | -1.2% |
| Canada | -1.5% |
| Japan | -3.1% |
| South Korea | -3.4% |
| Sweden | -4.7% |
| Australia | -2.7% |
| Hong Kong | 0.0% |
| Norway | -3.6% |
| India | -5.1% |
| South Africa | -6.1% |
| Brazil | -8.9% |
AUM by asset allocation
Average asset allocation for 2022 was 45.1% to Equity, 32.3% to Fixed Income, 7.9% to Cash, 7.1% to Alternatives and 7.6% to Other*.
Year-on-year AUM decrease in 2022 was led by Equity (inc. REITS) with a 19.6% drop, followed by Fixed Income with a 14.5% drop and alternatives with a 7.2% drop.
Other and cash had declines of 6.5% and 1.3% respectively.
| Year | Equity (inc REITS) | Fixed Income | Alternatives | Cash | Other* |
|---|---|---|---|---|---|
| 2018 | 20,280 | 17,708 | 3,517 | 3,649 | 3,594 |
| 2019 | 25,427 | 20,094 | 3,791 | 4,137 | 3,926 |
| 2020 | 29,709 | 23,026 | 4,299 | 4,914 | 4,654 |
| 2021 | 35,529 | 23,923 | 4,844 | 5,084 | 5,178 |
| 2022 | 28,548 | 20,458 | 4,493 | 5,017 | 4,843 |
*Other includes balanced funds/strategies, multi-asset funds, infrastructure, commodities, private debt, derivatives, currency, transition accounts, structured products and more.
Based on a subset of 191 asset managers in the 2022 ranking who provided relevant data for all years since 2018.
Growth of asset classes
Year-on-year (YoY) growth, based on a subset of 191 asset managers in the 2022 ranking who provided relevant data for all years since 2018.
- Equity (inc. REITS): Strong growth in 2019-2021, sharp decline in 2022 (below -10%)
- Fixed Income: Moderate growth in 2019-2021, significant decline in 2022
- Alternatives: Steady growth in 2019-2021, decline in 2022
- Cash: Growth in 2019-2020, declining trend through 2022 (near 0%)
- Other: Growth in 2019-2020, sharp decline in 2022
- Total: Growth in 2019-2021, sharp decline in 2022 (below -10%)
Performance of benchmark indices
Equities
U.S. equities had negative returns of -9.6% on average.
The MSCI Asian (ex Japan) and MSCI EM (Emerging Markets) indices lagged recovery with negative average returns of -13.1% and -13.7% respectively in 2022.
Chart shows monthly performance of the following indices from January 2022 to December 2022:
- MSCI Europe (Unhedged)
- MSCI AC Asia ex Japan (Unhedged)
- MSCI EM (Emerging Markets) (Unhedged)
- MSCI AC World (Unhedged)
- MSCI USA (Unhedged)
Performance of benchmark indices
Fixed income
All selected indices had negative returns, with the JPMorgan EMBI Global Core index, experiencing a decrease of 18.3% over the year, showing the most significant decline.
On the other hand, the Bloomberg Barclays US Corporate High Yield index had the best performance with average negative returns of 6.7% in 2022.
Indices tracked (Jan-22 to Dec-22):
- JPMorgan EMBI Global Core USD
- Bloomberg Barclays US Aggregate (Unhedged)
- iBoxx $ Corporates (Unhedged)
- Bloomberg Barclays US Corporate High Yield (Unhedged)
Asset allocation by vehicle
Mutual Funds/UCITs comprised 69.9% of surveyed assets in 2022. Its participation has been relatively stable during the last five years, increasing by 27bps in 2022.
YoY AUM growth in 2022 was -14.4% and -19.9% for other pooled/commingled and separate accounts, respectively. Mutual Funds/UCITs also decreased by 17.6%.
AUM by vehicle (USD billions):
| Year | Mutual Funds/UCITs | Separate Accounts | Other pooled/commingled |
|---|---|---|---|
| 2018 | 19,037 | 6,787 | 2,032 |
| 2019 | 22,857 | 7,633 | 2,439 |
| 2020 | 25,699 | 8,918 | 2,830 |
| 2021 | 29,082 | 9,627 | 3,037 |
| 2022 | 23,978 | 7,707 | 2,600 |
Based on a subset of 135 asset managers in the 2022 ranking who provided relevant data for all years since 2018.
Asset participation by regional client exposure
AUM by region (USD billions):
| Region | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|
| U.S. | 38,125 | 44,242 | 38,444 | 33,038 | 27,180 |
| Canada | 1,474 | 1,756 | 1,515 | 1,343 | 1,113 |
| Europe (ex U.K.) | 10,366 | 12,564 | 11,904 | 9,741 | 8,762 |
| U.K. | 4,684 | 6,078 | 5,638 | 5,181 | 4,528 |
| Japan | 2,356 | 2,820 | 2,615 | 2,253 | 1,829 |
| Australia | 948 | 903 | 950 | 847 | 724 |
| Other | 1,593 | 2,007 | 1,518 | 1,418 | 1,261 |
| Asia (ex Japan) | 2,411 | 2,700 | 2,331 | 1,942 | 1,669 |
Based on a subset of 151 asset managers in the 2022 ranking who provided relevant data for all years since 2018.
Asset allocation based on client category
AUM by client category (US$ billions):
| Category | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|
| Non-government retirement plans | 7,760 | 9,068 | 10,115 | 10,785 | 8,983 |
| Government retirement plans | 2,314 | 2,672 | 3,009 | 3,500 | 3,102 |
| Non-affiliated insurance companies | 2,766 | 3,460 | 4,285 | 4,485 | 4,152 |
| Sovereign wealth funds | 642 | 830 | 907 | 970 | 868 |
| Endowments & foundations | 576 | 673 | 818 | 940 | 810 |
| Central banks | 276 | 295 | 365 | 408 | 320 |
| Other | 7,497 | 8,461 | 9,659 | 11,148 | 8,504 |
Based on a subset of 146 asset managers in the 2022 ranking who provided relevant data for all years since 2018.
Allocation to ESG principles
Amount allocated to ESG principles decreased by 13.4% in 2022.
Despite this decrease in ESG investments to 10,690bn, their proportion within the portfolio surged to 26.4%, marking the highest level across these three years.
Amount invested in ESG Principles (USD billions):
- 2020: 10,135
- 2021: 12,342
- 2022: 10,690
Dispersion on ESG Principles allocation in 2022
| N=111 | 25th percentile | Median | 75th percentile | Average |
|---|---|---|---|---|
| 2022 | 12.1% | 62.4% | 100.0% | 55.8% |
| 2021 | 10.1% | 63.9% | 100.0% | 55.5% |
| 2020 | 10.6% | 50.9% | 100.0% | 53.4% |
Based on a subset of 111 asset managers in the 2022 ranking who provided relevant data for all years since 2020.
Allocation to ESG mandates
Dollar amount allocated to ESG mandates decreased by 3.9% in 2022.
Despite this decrease in ESG mandates to 2,057 bn, their participation in total investments surged to 6.3%, the highest level observed across these three years.
Amount invested in ESG mandates (USD billions):
- 2020: 1,435
- 2021: 2,141
- 2022: 2,057
Dispersion on ESG mandates allocation in 2022
| N=59 | 25th percentile | Median | 75th percentile | Average |
|---|---|---|---|---|
| 2022 | 1.1% | 3.7% | 10.5% | 12.1% |
| 2021 | 0.6% | 3.9% | 10.1% | 11.4% |
| 2020 | 0.5% | 2.5% | 7.8% | 10.1% |
Based on a subset of 59 asset managers in the 2022 ranking who provided relevant data for all years since 2020.
Allocation to LDI
Assets amount invested in LDI saw a 25.1% decrease in 2022, in contrast with the 6% increase in the previous year.
Amount invested in LDI (USD billions):
- 2020: 3,521
- 2021: 3,733
- 2022: 2,794
Dispersion on LDI in 2022
| N=44 | 25th percentile | Median | 75th percentile | Average |
|---|---|---|---|---|
| 2022 | 0.9% | 3.8% | 11.1% | 13.8% |
| 2021 | 1.0% | 4.1% | 11.3% | 14.0% |
| 2020 | 1.0% | 4.6% | 13.0% | 13.6% |
Based on a subset of 44 asset managers in the 2022 ranking who provided relevant data for all years since 2020.
Section 2 | Analysis of the largest 20 and 50 asset managers
Total value of assets managed by Top 20
Split by manager domicile
In 2022, there were 14 U.S. managers in the Top 20 accounting for 80.1% of the assets. The remaining assets were managed by European firms.
Assets of U.S. top 20 companies decreased in 2022 by 17.4% (from USD 48,726 billion to USD 40,242 billion).
Assets of European (including U.K.) top companies also suffered a hit, decreasing by 6.9% (from USD 10,768 billion to USD 10,027 billion) over 2022.
AUM by domicile (USD billions):
| Year | U.S. | Europe (inc U.K.) |
|---|---|---|
| 2013 | 20,852 | 10,474 |
| 2014 | 21,280 | 11,191 |
| 2015 | 22,190 | 9,618 |
| 2016 | 24,993 | 9,019 |
| 2017 | 29,325 | 10,817 |
| 2018 | 28,084 | 10,220 |
| 2019 | 36,524 | 8,397 |
| 2020 | 41,382 | 11,259 |
| 2021 | 48,726 | 10,768 |
| 2022 | 40,242 | 10,027 |
Annual growth of 500 vs. growth of Top 20
In USD
In six of the last ten years, the growth in assets managed by the largest 20 firms has exceeded the growth rate of the broader group of 500 firms. In 2022, the top 20 managers had a decrease of 15.5% versus a decrease of 13.7% for the top 500.
The 10-year CAGR of the top 20 was 5.9% versus 5.2% of the top 500.
Annual growth rates and market share:
| Year | Growth of Top 500 | Growth of Top 20 | Share Top 20/Top 500 |
|---|---|---|---|
| 2013 | 11.9% | 10.8% | 41.0% |
| 2014 | 2.2% | 3.7% | 41.6% |
| 2015 | -1.7% | -2.0% | 41.4% |
| 2016 | 5.6% | 6.9% | 41.9% |
| 2017 | 15.5% | 18.0% | 42.8% |
| 2018 | -3.0% | -4.6% | 42.1% |
| 2019 | 14.8% | 17.3% | 43.0% |
| 2020 | 14.5% | 17.2% | 44.0% |
| 2021 | 10.2% | 13.0% | 45.2% |
| 2022 | -13.7% | -15.5% | 44.2% |
