Global assets under management reached their pre-crisis level at the end of 2010 at $52.8 trillion and are expected to increase by a compound annual rate of 7.5% to $75.6 trillion by year-end 2015, according to an annual report published by Cerulli Associates.
The U.S. remained the largest albeit slower-growing market, according to the report, “Cerulli Quantitative Update: Global Markets 2011.” AUM sourced from the U.S. is estimated to increase at a compound annual rate of 6.8% to $36.4 trillion by year-end 2015 from $26.2 trillion as of Dec. 31.
Asia ex-Japan is the fastest-growing region at a rate of 12.8% compounded annually and is expected to reach $4 trillion, almost double the $2.2 trillion as of Dec. 31.
BlackRock, State Street Global Advisors and Allianz Global Investors were the largest managers, respectively, with $3.56 trillion, $2.01 trillion and $1.99 trillion in global AUM, respectively, as of Dec. 31. At the end of 2010, the top 25 managers accounted for $26.2 trillion in assets, a 6.07% increase from the previous year.
By asset classes, equity assets under management grew by 1.4 percentage points to 45.1% of the global AUM in the year ended Dec. 31, while assets in bonds grew by 0.9 percentage points to 24.1%. Balanced strategies increased by 0.3 percentage points to 8.2%, and the “others” category each increased by 0.2 percentage points to 9.4% during the same period. AUM in money market strategies decreased by 2.8 percentage points to 13.2% as a result.
“Risk appetite definitely returned in the second half of 2010 and continues into the early months of 2011,” according to the report. “This suggests continued demand for higher-return products, but there is skittishness about this demand.”
By year-end 2015, equities AUM is expected to total 46.7% of the global assets under management while bonds are estimated to be 24.9%; money markets, about 10.2%; “others,” about 9.6%; and the remainder in balanced strategies, according to the report.