Market Trends of North America Fixed Income Assets Management Industry
This section covers the major market trends shaping the North America Fixed Income Assets Management Market according to our research experts:
Prominence of HNWIs in Fixed Income Investments in North America
High Net Worth Individuals in North America are the second largest population with around 20 trillion USD wealth. They are so crucial for the asset management firms that they leave no stone unturned when it comes to improving the HNWI client relationship. Asset management firms managing the HNIs wealth have clearly given prominence to fixed income given their long-term investment horizon. An infographic explaining the asset allocation of HNWIs in North America in 2019 is presented below.
Active Vs Passive: Wealth Managers Take on Fixed Income Assets
Asset Managers have been observing a clear trend of active to passively managed shift in fixed income and other asset classes. Even if the migration from active to passive continues at the same pace as the past several years, active fixed income strategies will still make up a large proportion of the aggregate AUM and revenue base of North American managers. The shift from active to passive investment strategies appears to be increasing some types of risk while diminishing others: The shift has probably reduced liquidity transformation risks, although some passive strategies amplify market volatility, and passive-fund growth is increasing the asset-management industry concentration.
