How big is the asset management industry?
Asset Management Market was valued at USD 371.2 billion in 2022 and is predicted to grow at around 34% CAGR between 2023 and 2032, due to the aging infrastructure across several economies.
Global Asset Management Market size was valued at USD 277.42 billion in 2021 and is poised to grow from USD 373.69 billion in 2022 to USD 5455.24 billion by 2030, growing at a CAGR of 34.7% in the forecast period (2023-2030).
Bar chart based on a McKinsey survey showing that estimated total North American asset manager spending fell from $155 billion in 2021 to $151 billion in 2022, helped mainly by a 6% decline in investment management costs and a 5% drop in distribution costs.
The United States, along with the United Kingdom, is a key center in both the source of assets under management, and, even more importantly, as a dominant force in the asset management industry itself.
Vanguard takes institutional lead over BlackRock
BlackRock remains the world's largest asset manager overall.
As of 2022, the global AUM in the asset management industry stands at $98.3 Trillion, reflecting steady growth over the past few years.
Asset Management Market was valued at USD 371.2 billion in 2022 and is predicted to grow at around 34% CAGR between 2023 and 2032, due to the aging infrastructure across several economies.
The asset management industry in 2023 faces numerous complex challenges, from regulatory scrutiny to intense deal competition and high operational costs. And that's in addition to geopolitical tension, the threat of recession, and rising interest rates.
Largest full-service investment banks
JPMorgan Chase. Goldman Sachs. BofA Securities. Morgan Stanley.
Asset management is a prestigious field that demands top talent. There are fewer positions available than in areas such as investment banking, and the relatively lower number of jobs coupled with the high level of qualifications can make landing an opportunity in this field a challenge.
What are the three areas of asset management?
While the definition of asset management may differ from one organization to another, they can be vastly classified into three types: physical, financial, and contractual.
Asset Management Pros and Cons
Given these benefits competition for jobs in asset management is extremely high, the number of roles is limited, and demand for roles is high as many investment bankers and hedge fund professionals see asset management as a good exit opportunity.
Top 10 Global Asset Managers
The ranking of the top 10 global managers was almost unchanged from last year. BlackRock retained the top spot with €7.1trn of AUM, with Vanguard, Fidelity, SSGA, Capital Group and JPMAM also keeping their positions.
Top 10 Asset Managers in the World in 2021 by Assets Under Management (AuM) Showing 10 out of 25 companies. BlackRock Inc, The Vanguard Group Inc, FMR LLC, State Street Corp, and JPMorgan Chase & Co are the 5 largest asset managers in the world in 2021 by Assets under management (AuM).
BlackRock is not owned by a single individual or company. Instead, its shares are owned by a large number of individual and institutional investors. The biggest institutional shareholders such as The Vanguard Group and State Street are merely custodians of the stock for their clients.
Asset Manager salary in India ranges between ₹ 2.3 Lakhs to ₹ 15.4 Lakhs with an average annual salary of ₹ 6.6 Lakhs. Salary estimates are based on 1.2k latest salaries received from Asset Managers.
BlackRock's competitors and similar companies include Charles Schwab, Northern Trust, Fidelity Investments, State Street, Vanguard, Berkshire Hathaway and Edward Jones. BlackRock is a company that provides investment advisory and risk management solutions.
As a post-MBA Analyst at a large mutual fund, total compensation might be on par with what post-MBA IB Associates earn: around $250K to $350K. At the Portfolio Manager level, earning potential is around $1.0 – $1.5 million per year.
The standard fee for asset managers is 1% of whatever is being invested. Some asset management funds also make money through a performance fee, similar to a bonus. Performance fees are setup so asset managers are rewarded with a bonus payout when growing the fund to a certain target threshold.
The Bottom Line. Investment banking and asset management are lucrative, prestigious, and selective fields in which to work. Receiving an offer in either field means you've done something right.
Is asset management stressful?
Long Hours: Many asset management companies require their employees to work long hours, often requiring them to work late nights and weekends. 2. High Pressure: Asset management companies are often in high-pressure environments and require their employees to make quick decisions with large amounts of money.
As an asset manager, you make money by charging a management fee for your services. The fee structure can vary from firm to firm, but an annual fee of one to two percent of the total value of assets managed is common. In other words, the bigger the client, the higher your fee.
What do we think asset management will look like in 2025? Asset managers will be more responsive to client needs on the digital level. The personal relationship with an advisor will erode and investors will take charge. Firms will be mostly cloud-based and AI-operated.
Key findings
While active management will continue to grow and play an important role, reaching $87.6 trillion by 2025 (60% of global AuM), PwC predicts growth in passive management to reach $36.6 trillion by 2025 (25% of global AuM).
BlackRock's brand is ranked #602 in the list of Global Top 1000 Brands, as rated by customers of BlackRock. Their current market cap is $108.30B. Fidelity Investments's brand is ranked #162 in the list of Global Top 1000 Brands, as rated by customers of Fidelity Investments.
