The total assets under management (AUM) of the world’s 500 largest investment managers fell by 13.7 per cent year-on-year between 2021 and 2022, according to research by the Thinking Ahead Institute (TAI). marking the first significant drop since the 2008 financial crisis.
The decrease in assets varied regionally, with Japanese managers faring better compared to their North American and European counterparts. The report also observed a shift from actively to passively managed funds, and a slight increase in alternative investments amidst a decline in equity and bond markets. The top 20 managers were impacted more due to their substantial holdings in mainstream markets, with their share of total assets dipping slightly. BlackRock retained its position as the largest asset manager despite a reduction in its AUM. This period witnessed heightened economic turbulence, attributed to various factors including high inflation and geopolitical tensions, which adversely affected the gains made in 2021.
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