Growth Slows Among Asia's Asset Managers

Compared to previous years, where Japan and China led the charge amongst their global peers, Asia’s asset managers experienced a slowdown in their growth over 2020.

A change of mindset needs to happen within the Asian asset management industry for it to execute on net zero mandates and adhere to upcoming regulatory measures, Thing Ahead Institute said in a new report on the largest money managers globally.

«If asset managers in Asia want to continue the meteoric rise they’ve seen in the past, they will need to create greater diversity and resilience in their business models as well as within their portfolios,» Jayne Bok, Head of Investments, Asia, at Willis Towers Watson, said.

She added that the inclusion of ESG practices into their investments will be critical to the future resilience of their portfolios and will determine whether or not they will out-perform their global peers in years to come.

U.S. Dominates

Assets under management (AUM) at the world’s 500 largest asset managers reached a record high of $119.5 trillion, according to the report, jointly conducted with Willis Towers Watson and «Pensions & Investments.» As of the end of 2020, this represents an increase of 14.5 percent on the previous year's $104.4 trillion.

Blackrock retained its position as the largest asset manager in the ranking, followed by Vanguard in second place position for the seventh consecutive year.

Of the top 20 names, 14 are U.S. managers, accounting for 78.6 percent of the top 20 AUM. On the whole, passive investments represent 26 percent, an increase of 16.2 percent compared to a 15.4 percent growth in actively managed AUM.

More Concentration, Competition

The report highlighted the growing concentration among the top 20 managers, whose market share increased during the period to 44 percent of total assets.

It also noted the quickening pace of competition, consolidation and rebranding, with 221 names from the list in 2011 now absent.

APAC’s Largest Money Managers

Ranked by total assets under management, in U.S. millions, as of as of 31 December 2020.