Five asset managers lead the way amid a global drop in assets under management
Total assets under management (AUM) at the world’s 500 largest asset managers amounted to USD$113.7 trillion at the end of 2022, says research from the Thinking Ahead Institute. This represents a 13.7 percent drop on the previous year, which is the first significant fall in assets since the Global Financial Crisis of 2008.
The research identified some differences by region showing Japanese managers within the world’s largest 500 fared much better than average with a 5.5 percent decrease in assets year over year, while North American asset managers had a 14.2 percent decrease and Europe (including the UK) had a 16.8 percent decrease. Canadian asset managers, however, have had a 7.6 percent compound annual growth rate from 2017 through 2022.
The research also revealed investment in passively managed funds accounted for 34.7 percent of the total AUM, as of the end of 2022, up four percent over the previous year.
Among asset classes, the fall in equity and bond markets caused a gentle shift in weightings with alternative investments increasing to 7.1 percent of assets managed globally. The market falls caused the combined equity and fixed income allocation to decrease by 2.4 percent from a stable 79-80 percent share over the last 10 years.
Asset managers continue to monitor sustainability and ESG factors, as they remain integral to investment programs. Technology also continues to trend for managers as new developments and innovations such as artificial intelligence and automation offer benefits to asset managers in building resilience and meeting current challenges.
Among the top asset managers of 2022, the largest Canadian asset managers are:
Sun Life is an international financial services organization that provides a diverse range of insurance, wealth, and asset management solutions to individual and corporate clients. The firm has operations in a number of markets worldwide including Canada, the US, the UK, the Philippines, China, and Australia.
SLGI Asset Management Inc. is a subsidiary of Sun Life Financial Inc. As of September 30, 2023, SLGI Asset Management Inc. manages $34.3 billion on behalf of institutional and retail investors from across Canada.
- Power Financial – $1,250.5 billion
Power Financial, a wholly owned subsidiary of Power Corporation of Canada, is an international management and holding company with interests in financial services and asset management businesses in Canada, the US, and Europe. It also has significant holdings in a portfolio of global companies based in Europe through its investment in GBL.
- Manulife – $1,151.3 billion
Manulife Investment Management is the brand for the global wealth and asset management segment of Manulife Financial Corporation. The company serves individuals, institutions, and retirement plan members, around the world.
- Brookfield Asset Management – $1,076.6 billion
Brookfield Asset Management Ltd. is a global alternative asset manager with assets across renewable power and transition, infrastructure, private equity, real estate, and credit. The firm offers a range of alternative investment products to investors around the world – including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies, and private wealth investors. The firm also owns and operates properties in major markets around the world.
- Royal Bank of Canada (RBC Global Asset Management) – $1,005.7 billion
RBC Global Asset Management (RBC GAM) is the asset management division of Royal Bank of Canada (RBC) and includes money managers BlueBay and Phillips, Hager & North Investment Management. RBC GAM is a provider of global investment management services and solutions to institutional, high-net-worth, and individual investors through separate accounts, pooled funds, mutual funds, hedge funds, exchange-traded funds, and specialty investment strategies.
AUM Source: 2023, Thinking Ahead Institute