Top 400: Passive growth slowing – but still beating active

The growth of passive investment continues to outpace that of active investment at both global and European levels, according to IPE’s latest Top 400 Asset Managers survey.

Passively managed assets of global and European institutional managers grew nearly twice as much as actively managed assets between 2013 and 2018, the latest iteration of the annual survey found. 

IPE’s data shows the compound annual growth rate (CAGR) for European institutional passive investments was 14.6% for the period, while actively managed assets grew by 7.8% per year.

Globally, passively managed assets grew almost 18% a year between 2014 and 2018, while actively managed assets grew by 9.2%.

The growth figures are based on a like-for-like sample of 79 European institutional managers directly comparable across the period, managing €3trn of active assets and €963bn of passive assets, according to this year’s survey.

For global managers, IPE used a sample of 93 managers with €14trn of active assets and €5trn of passive assets.

 Top 400 survey

However, IPE’s research also shows that, last year, active managers gained some ground versus passive managers. As of 2017, passively managed assets grew three times faster than actively managed.

This suggested that, while investors kept allocating to passive products or strategies, in 2017 the pace of growth of passive investments slowed down as investors re-allocated to active.

Active investment still vastly outsizes passive investment at both global and European levels.

At the end of 2017, 69% of assets managed by the sample of 79 European institutional managers was run on an active basis, while 68% of assets managed by global firms was run passively. The ratio was stable compared with the previous year.

The winners and losers

IPE Top 400

The top five biggest managers remained unchanged compared to last year’s survey: BlackRock comfortably retained its status as the world’s biggest asset manager with €5.3trn. Vanguard was second with €4.1trn.

Amundi entered the top 10, running €1.4trn, while Goldman Sachs Asset Management’s year-on-year decline in assets under management – €1.07trn in 2018, versus €1.12trn last year – saw it fall from 10th position to 12th.

The newly merged Aberdeen Standard Investments debuted this year as the 25th biggest asset manager in the Top 400 survey, with €648.5bn. Janus Henderson Investors, another recently merged entity, made its first appearance at 62, with €308.8bn under management.

The full report is available with the June edition of IPE.

Top 400 Asset Managers 2018 (Top 25)

 CompanyCountryTotal AUM 2018Total AUM 2017
   31/12/17 (€m)31/12/16 (€m)
2Vanguard Asset ManagementUS/UK4,090,0103,727,455
3State Street Global AdvisorsUS/UK2,316,5332,340,323
4Fidelity InvestmentsUS2,003,2702,129,650
5BNY Mellon Investment Management US/UK1,585,9201,518,420
6Capital GroupUS1,504,3591,401,780
7J.P. Morgan Asset ManagementUS/UK1,471,2261,479,125
10Prudential FinancialUS1,160,5831,201,082
11Legal & General Investment ManagementUK1,107,6661,047,470
12Goldman Sachs Asset Management InternationalUS/UK1,073,7691,116,606
13Wellington Management InternationalUS899,647928,380
14Natixis Investment ManagersFrance/US830,847831,501
15T. Rowe PriceUS/UK825,368768,711
17Northern Trust Asset ManagementUS/UK800,644-
19AXA Investment ManagersFrance745,912699,628
20DWS - Deutsche Asset ManagementGermany701,736705,867
21Affiliated Managers GroupUS696,554689,000
22UBS Asset ManagementSwitzerland/UK663,562612,754
23Insight InvestmentUK658,905612,719
24Sumitomo Mitsui Trust BankJapan656,450659,180
25Aberdeen Standard InvestmentsUK648,519-

Click here to download the complete Top 400 table

(To buy the Top 400 data, email Emma Morgan-Jones)

Related images

  • Top 400 survey

Have your say

You must sign in to make a comment


Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2563

    Asset class: Mid & Small Cap Equities.
    Asset region: Global.
    Size: USD $130m.
    Closing date: 2019-09-27.

  • QN-2564

    Asset class: Large Cap Growth Equities.
    Asset region: Global Developed Markets.
    Size: USD $130m.
    Closing date: 2019-10-04.

  • DS-2567

    Closing date: 2019-10-02.

  • QN-2569

    Asset class: Local Currency Bonds.
    Asset region: Global Emerging Markets.
    Size: $500m.
    Closing date: 2019-10-10.

Begin Your Search Here