The global money management industry has seen very strong growth since the financial crisis, although more specialized approaches have been more successful than traditional money management approaches, said a report from management consulting firm McKinsey & Co.
The report, “The New Imperatives: Gaining an Edge in North American Asset Management,” states that total global assets under management increased 13% during 2013 to reach a record $64.3 trillion, with all major regions outside of Japan generating growth.
U.S. assets under management grew 16% during 2013, up to $30 trillion.
While the trend is positive, most of the flows over 2013 and the four years prior have come from more specialized equity and fixed-income strategies as opposed to traditional strategies.
For example, more specialized fixed-income asset classes have thrived as investors have moved away from Barclays Capital Aggregate Bond index-benchmarked strategies. Over the past five years, credit, global fixed income, high yield, multisector and unconstrained fixed-income strategies have seen $50 billion in total net inflows in the U.S. in the past five years, compared to more than $100 billion in net outflows for core and core-plus fixed income.