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Laxman Pai, Opalesque Asia: The global asset management industry grew to a record-breaking $128 trillion in assets under management (AUM) in 2024, a 12% increase from the previous year, according to a study.
The industry's performance marks a rebound from its decline in 2022, but the recovery belies mounting structural pressures that demand urgent reinvention, stated Global Asset Management 2025, the 23rd edition of this report from Boston Consulting Group (BCG).
This year's report, titled From Recovery to Reinvention, reveals that more than 70% of the industry's $58 billion in revenue growth in 2024 was driven by market performance rather than investor inflows, underscoring the industry's vulnerability to external forces.
Meanwhile, persistent fee compression, shifts in investor preferences, and digital disruption are pushing firms to redesign their business models, accelerate cost innovation, and sharpen their strategic focus, the report said.
Looking forward, asset managers have two opportunities to win in an evolving product and distribution landscape. First, they can claim a larger portion of a shrinking but important pool of actively managed assets-specifically, in active exchange-traded funds (ETFs), model portfolios, and separately managed accounts. Second, they can mobilize to play a key role in the growing market for delivering private assets to retail clients.
In 2024, 44% of all newly launched ETFs were actively managed, and th...................... To view our full article Click here
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