Global Assets Under Management Growth and Performance

The global assets under management (AUM) market has seen significant growth over the past decade, with assets growing from $78 trillion in 2010 to $112 trillion in 2020.

This growth is largely driven by increasing investor demand for professional asset management services. In 2020, institutional investors accounted for 62% of total AUM, while retail investors made up 38%.

The largest asset management markets are in the United States, Europe, and Japan, which together account for over 70% of global AUM. The United States alone accounts for over 40% of global AUM.

Assets under management have been steadily increasing, with a compound annual growth rate (CAGR) of 8% from 2010 to 2020.

Discover more: Aea Investors Fund Size

The global assets under management market has seen significant growth in recent years.

In 2020, the global assets under management reached a record high of $108 trillion, according to a recent report. This represents a 10% increase from 2019.

Assets under management in the Asia-Pacific region have been growing rapidly, with a 12% increase in 2020 alone.

The United States remains the largest market for assets under management, accounting for over 30% of the global total.

Despite the growth, the global assets under management market still faces challenges, including increasing regulatory scrutiny and changing investor preferences.

Readers also liked: Capital Allocation Line vs Capital Market Line

The global assets under management are distributed across various regions, with a significant presence in North America, accounting for $40,000 billion in assets.

Europe follows closely, with $20,000 billion in assets under management. This is a substantial amount, reflecting the region's economic strength and investment activity.

In contrast, the Middle East and Latin America have relatively smaller shares, with $6,000 billion and $2,000 billion in assets, respectively.

Here's a breakdown of the regional distribution of assets under management in 2020:

Assets by region are a critical aspect of understanding the global distribution of assets. The data shows that North America holds a significant portion of assets, with a value of $40,000 billion in 2020.

Breaking down the assets by region, we can see that North America has a substantial lead over other regions. This is likely due to the presence of major economies and financial hubs in the region.

Here's a breakdown of the assets by region in 2020:

Europe holds the second-largest share of assets, with a value of $20,000 billion in 2020. This is a significant amount, but still lower than North America's total.

European households have varying levels of wealth across the continent. The gross financial assets per capita in Europe in 2023 range by country.

In the UK, the financial net worth of households per capita has been steadily increasing since 2000, reaching a high of £73,600 in 2023. In contrast, the financial net worth of households per capita in Germany has also been increasing, but at a slower rate, reaching €63,400 in 2023.

Household currency and deposits account for a significant share of total financial assets in many European countries. In the UK, this share has remained relatively stable between 2000 and 2023, while in Germany, it has been decreasing over the same period.

Equity is an important component of household financial assets in Europe. In 2023, the equity share of household financial assets in the UK was 38.1%, while in Germany, it was 24.5%.

Here's a breakdown of the equity share of household financial assets in some European countries in 2023:

Overall, European households have diverse financial profiles, with varying levels of wealth and asset composition.

In the world of global assets under management, performance metrics play a crucial role in measuring success.

Returns on investment are a key performance metric, with the global average return on investment ranging from 2-5% annually.

Low-risk investments tend to have lower returns, while high-risk investments can offer higher returns, but also come with greater uncertainty.

Risk-adjusted returns are a more comprehensive metric, taking into account both the return on investment and the level of risk taken.

The Sharpe ratio is a widely used metric for evaluating risk-adjusted returns, with a higher ratio indicating better performance.

A Sharpe ratio of 1 or higher is generally considered good, while a ratio below 1 indicates that the investment's return is not enough to compensate for its risk.

A different take: Asset Management Ratio