Top 400: Global assets up 8.9% in 2013
M&A has featured highly in asset management in recent years. Until now, this has largely been dictated by external circumstances, such as bank parent companies seeking to increase capital adequacy or to abide by competition regulations.
• Total AUM of top 400 managers = €42.7trn (2013 = 39.2trn; 2012 = €36.3trn; 2011 = €36.2trn).
• Increase in AUM of 8.9% over 2013.
• BlackRock is the largest manager (€3.1trn) and accounts for 7.2% of overall assets.
• Top 10 managers account for about a third (33.6%) of all assets.
M&A has featured highly in asset management in recent years. Until now, this has largely been dictated by external circumstances, such as bank parent companies seeking to increase capital adequacy or to abide by competition regulations. As Fitch Ratings notes in this year’s report section, recent deals now seem to reflect strategic priorities rather than external contingencies. This can be seen in TIAA-CREF’s recent acquisition of Nuveen Investments for $6.25bn (€4.6bn) or Aberdeen Asset Management’s £550m ($680m) purchase of Scottish Widows Investment Partnership.
Whatever the motivation, transactions can lead to profound changes in the culture of an asset management firm. The focus of our first expert contribution in this year’s report concerns that topic, with the contention that culture is an important, yet often underrated, element that can dictate the success or otherwise of an asset management company.
Elsewhere in the report we also look at manager performance, innovation, cost rationalisation, regulation and other key topics.
Looking at our data, the global assets in the top 400 were up a healthy 8.9% over 2013, following 2012’s 8% increase. Overall, European institutional assets were up from €6.3trn to €6.4trn. Where stated, pension fund assets account for €2.2trn.
The US is the biggest investment management centre in the survey, with €26.2trn in assets under management. The UK is next with €4trn, ahead of France’s €3trn. Overall in the survey, the top 10 managers account for around a third of the total assets, with the remaining 390 taking the remaining two-thirds.
In New York’s gilded age at the end of the 19th century, just 400 people were counted as members of fashionable society. In this vein, since 2002, IPE has collected data on the leading 400 asset managers both globally and in Europe. The data is compiled by IPE, based on information provided by the individual companies and from public sources.