Overview
Since 2006, few areas in asset management have grown as quickly as indexed strategies. In 2023, worldwide indexed assets from Pensions & Investments' survey was $21.1 trillion, up from $4.3 trillion in 2006.
Institutional investors accounted for $13.2 trillion in assets under management. Generally, institutions accounted for around 65% of assets in each asset class. Globally, assets were spread in different vehicle structures, with mutual funds/UCITS/ETFs, separate accounts and other representing 44.3%, 42.6% and 13.1%, respectively. Emerging markets strategies represented around $690 billion, but they have had limited growth recently. P&I recently started asking about outflows and inflows. The data was mixed, with about 57% of the managers seeing inflows.
U.S. client AUM
U.S. investors accounted for $16.2 trillion of indexed assets, up from $3.1 trillion in 2006. This represents an astonishing 10.3% annualized growth rate and $13 trillion more in assets. U.S. investors accounted for 77% of all indexed assets globally.
Passive equity assets represented 80.3%. Assets in indexed equity assets have grown more than 10% annually over the past 10 years and since 2006. Passive U.S. fixed-income assets have grown double digits over the past 10 years, but a more moderate rate of 6.7% since 2006.
Institutional clients represented $5.7 trillion or 35.2% of the U.S. total. U.S. clients' equities made up the majority of assets. Institutional clients did represent around 50% of all global equity and fixed-income strategies.
Traditional mutual funds (excluding ETFs/ETNs), accounted for $4.8 trillion or almost 30% of the U.S. total, with Vanguard Group accounting for $3.7 trillion.