Global assets under management

In finance, global assets under management consists of assets held by institutional investors and individual investors around the world. For example, these institutional investors include asset management firms, pension funds, endowments, foundations, sovereign wealth funds, hedge funds, and private equity funds. In contrast, individual investors include ultra high-net-worth individuals (UHNWI), high-net-worth individuals (HNWI), the mass affluent, and other retail investors.

Assets by classification

Rank Fund type US$ billion Figures as of— Private wealth $32,800 http://www.thecityuk.com/assets/Uploads/Fund-Management-2012.pdf 20081 Pension funds $62,000 20212 Banks $50,600 20133 Insurance companies $35,100 20204 Mutual funds $23,800TheCityUK - Fund Management 2012 20115 Real estate $10,000The Future Size of the Global Real Estate Market 20066 Foreign exchange reserves $7,341Foreign exchange reserves of the world February 20087 Sovereign wealth funds $3,980Sovereign wealth funds grow to $3,980bn 20118 Hedge funds $2,845 20149 Private equity funds $1,600200910 REITs $764 200711 Family Offices $140 - $4202011

Around one third of private wealth is incorporated in conventional investment management (Pension funds, Mutual funds and Insurance assets). Many surveys systematically overestimate the global wealth pool. This is because they fail to separate out assets that are inaccessible for wealth management services (e.g. pension assets, real estate, dedicated liquidity, etc.)Regaining momentum in wealth management - Roland Berger Strategy Consultants, page 15

Assets by region Assets by region, 2020RegionValue by region (in US$ billions)North America 40,000Europe 20,000Middle East 6,000Japan and Australia 5,200Asia (excluding Japan and Australia) 5,200Latin America 2,000

Assets by company

Key AM — Asset management firm FOREX — Foreign exchange reserves HF — Hedge fund MF — (Exchange Traded) Mutual fund PEN — Pension fund PE — Private equity firm SWF — Sovereign wealth fund UHNWI — (Billionaire) Ultra high-net-worth individual

Companies Investor Name Type Total assets(US$ billion) BlackRock AM 15,100 Charles Schwab Corporation AM 11,900 The Vanguard Group AM 12,000 People's Bank of China FOREX 7,130 Fidelity Investments AM 3,600 Allianz Asset Management (PIMCO + Allianz Global Investors) AM 3,400 State Street Global Advisors AM3,300 Capital Group AM2,300 JPMorgan Chase AM2,300 BNY Mellon Investment Management AM2,300 Goldman Sachs AM2,300 Amundi AM2,000 Government Pension Investment Fund (Japan) PEN 1,370 Bank of Japan FOREX 1,264 Government Pension Fund - Global (Norway) SWF 893 Government Pension Fund of Norway (Norway) PEN 856 Civil Service Retirement and Disability Fund (United States) PEN 832 Abu Dhabi Investment Authority (Abu Dhabi) SWF 773 SAMA Foreign Holdings (Saudi Arabia) SWF 757 Saudi Arabian Monetary Authority FOREX 745 UBS Asset Management AM 680 China Investment Corporation (China) SWF 653 SAFE Investment Company (China) SWF 567 Swiss National Bank FOREX 531 Central Bank of the Russian Federation FOREX 429 Stichting Pensioenfonds ABP (Netherlands) PEN 427 National Pension Service (South Korea) PEN 400 Canada Pension Plan Investment Board AM 278 Barclays Inverse US Treasury Composite ETN (Blackrock) MF 211 SPDR S&P 500 (State Street Global Advisors) MF 200 Bridgewater Associates HF 78 Bill Gates (Microsoft) UHNWI 76 Carlos Slim (Grupo Carso/Telemex) UHNWI 72 Core S&P 500 ETF (Blackrock) MF 70 Man Group HF 65 Amancio Ortega (Inditex Group) UHNWI 64 Warren Buffett (Berkshire Hathaway) UHNWI 58 iShare MSCI EAFE ETF (Blackrock) MF 54 Total Stock Market ETF (the Vanguard Group) MF 50 Larry Ellison (Oracle Corporation) UHNWI 48 JP Morgan Asset Management HF 47 Brevan Howard Asset Management HF 37 TPG Capital PE 36 the Carlyle Group PE 33 the Blackstone Group PE 30 Och-Ziff Capital Management Group HF 29 Kohlberg Kravis Roberts (KKR) PE 28 Warburg Pincus PE 26

Discretionary vs non-discretionary assets Global assets under management include both discretionary and non-discretionary assets. However, there are important differences between these two types of assets. Industry standards and guidance to distinguish the two types has been established by Global Investment Performance Standards (GIPS). According to GIPS, discretion refers to the extent to which an organization, for example an asset manager, is permitted to manage the assets and implement its intended investment strategy on behalf of the asset owner. More specifically, discretion refers to the extent to which assets are permitted to be managed, and intended investment strategies are permitted to be implemented, through the decisions and actions of fund managers and general partners (GPs) at the asset manager.

The asset owner ultimately owns the assets. For example, asset owners include institutional limited partners (LPs), such as endowments, foundations, pension funds, and sovereign wealth funds. If restrictions and limitations imposed by the asset owner significantly hinder the organization from fully implementing the intended investment strategy, the assets may be considered non-discretionary. There are degrees of discretion and not all restrictions and limitations will necessarily result in assets being considered non-discretionary. For example, if an asset owner requires that the organization avoid any tobacco-related investments, the organization would first consider if this restriction hinders the implementation of the intended strategy. If it does, the organization would likely classify these assets as non-discretionary.

Global assets under advisement A concept related to global assets under management in the investment industry is global assets under advisement (AUA). This measures the total market value of the assets that are advised by a financial institution, which is often an investment consultant or other intermediary. In general, the advisory firm does not have discretion to manage the assets. Rather, in a non-discretionary manner, it provides advice and makes recommendations as to how those assets may be managed.

Global assets under management

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