US ASSET MANAGEMENT MARKET - GROWTH, TRENDS, AND FORECAST (2019 - 2024)

The US Asset Management Market is segmented by Asset Class, Source of Funds, Type of Asset Management Firms, and Revenue by Type of Asset Management Firms.

Market Snapshot

Market Snapshot
Study Period:

2012-2024

Base Year:

2018

Key Players:

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Market Overview

The US asset management market registered a CAGR of 5.68% during the period, 2012 – 2017.

  • Sustainable, responsible, and impact (SRI) investing in the United States continues to expand at a healthy pace. The total US-domiciled assets under management using SRI strategies grew from USD 8.7 trillion at the start of 2016 to USD 12.0 trillion at the start of 2018, an increase of 38%. This represents 26% or 1 in 4 dollars of the USD 46.6 trillion in total US assets under professional management.
  • The US asset management market is unrivaled in its depth and diversity. The US asset managers are currently meeting the pension management needs of over 60% of the global retirement market. The total US retirement assets were approximately USD 28.2 trillion at the end of 2017. Moreover, if insurance assets and mutual funds are included, the US asset managers held nearly USD 51 trillion of long-term conventional assets under management in 2016 (more than 47% of the global total for these funds).
  • The global venture capital (VC) industry was first established in the United States, and it continues to support many of the most innovative companies in the world. In 2017, USD 84 billion was invested in the country, which has seen a whopping 56% rise and reached a USD 130.9 billion in 2019, surpassing Dot-Com Era.  VC-backed companies employ 38% of the US workforce, and account for 82% of the private sector research and development. These companies have historically generated revenue equal to 21% of the US GDP. 
  • The US private equity firms invested more than USD 500 billion in the US-based companies in 2017, and the investment reached USD 713 billion by the end of 2018. The private equity industry in the United States comprises nearly 4,700 investment firms, operating the US-based businesses in all 50 states. The industry comprises of over 30,000 private US companies. These US companies backed by the US private equity firms employ 11.3 million people in the United States and 19.6 million people worldwide. 

Scope of the Report

The US asset management market covers different segments of asset management, like fixed income, equities, pension, alternative, and hybrid fund, along with insights on return generated by different asset classes and asset management process flow.

Asset Class (2012-2018)
Equity
Fixed Income
Alternative Investment
Cash Management
Others
Source of Funds (2012-2018)
Pension Funds and Insurance Companies
Retail Investors
Institutional Investors
Government/Sovereign Wealth Fund
Others
Type of Asset Management Firms (2012-2018)
Large Financial Institutions/Bulge Brackets Banks
Mutual Funds and ETFs
Private Equity and Venture Capital
Fixed Income Funds
Hedge Funds
Managed Pension Funds
Others

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Key Market Trends

Outlook of the US Economy and Investment Management Industry

Both the US economy and the US stock market have been performing well. The US economy grew at a 3.2% clip during the first quarter of 2019, and S&P 500 has gone up by around 12% during the January 2019 to May 2019 period. Even though interest rates have been on a rise, the quantum of increase in interest rates has been manageable, and has not created any major shocks in the performance of the US economy and the stock markets. Sustained higher interest rates may hamper the asset price growth, hence hampering the returns provided by financial asset managers. Investment managers have already been surviving in a period of lower expense ratios and higher operating costs, and hence consolidation is expected in the market. However, an improved economy may lead to more disposable income and better profits for companies. This, in turn, may help investment managers increase fees and income. However, currently a wave of consolidation is expected in the market, as the market is highly competitive due to disruptions caused by technological changes and dynamic consumer/retail investor behavior. 

 

 

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Decrease in Expense Ratio in Various Asset Classes

Rising costs of managing the fund and declining profits of the portfolio have forced asset manager to cut the expense ratio of the long term funds with in-demand asset constituents, such as equity, hybrid fund, etc. The consequence of such measures is that overall returns show improvement. Many firms have been forced to consider redesigning their business operating models as part of a renewed strategic focus on aggressive cost control and operational efficiency. A wave of marketing from smaller niche and effective players, claiming to have found the secret of generating better alpha by using algorithms, has managed to give competition to larger players. Such smaller players seem to claim that they can fulfill sustainable investment needs of millennials without sacrificing returns and charging higher costs. This wave has forced to reduce the expense cost on various financial assets.

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Competitive Landscape

The US asset management market is highly competitive, with the presence of major international players. The market studied presents opportunities for growth during the forecast period, which is expected to further drive the market competition. With multiple domestic players holding significant shares, the market studied is competitive.

Major Players

  1. BNY Mellon Investment Management
  2. PIMCO
  3. FMR Corp.
  4. Goldman Sachs
  5. Capital Group

* Complete list of players covered available in the table of contents below

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Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Technological Innovations

    4. 4.4 Industry Policies and Government Regulations

    5. 4.5 Trends Disrupting the Market

    6. 4.6 Insights on Return Generated by Different Asset Classes

    7. 4.7 Asset Management Process Flow

    8. 4.8 Insights on Fee Structure and Operating Cost

    9. 4.9 Market of Sustainable, Responsible, and Impact investing

  5. 5. MARKET SEGMENTATION

    1. 5.1 Asset Class (2012-2018)

      1. 5.1.1 Equity

      2. 5.1.2 Fixed Income

      3. 5.1.3 Alternative Investment

      4. 5.1.4 Cash Management

      5. 5.1.5 Others

    2. 5.2 Source of Funds (2012-2018)

      1. 5.2.1 Pension Funds and Insurance Companies

      2. 5.2.2 Retail Investors

      3. 5.2.3 Institutional Investors

      4. 5.2.4 Government/Sovereign Wealth Fund

      5. 5.2.5 Others

    3. 5.3 Type of Asset Management Firms (2012-2018)

      1. 5.3.1 Large Financial Institutions/Bulge Brackets Banks

      2. 5.3.2 Mutual Funds and ETFs

      3. 5.3.3 Private Equity and Venture Capital

      4. 5.3.4 Fixed Income Funds

      5. 5.3.5 Hedge Funds

      6. 5.3.6 Managed Pension Funds

      7. 5.3.7 Others

    4. 5.4 Revenue by Type of Asset Management Firms (2015-2024)

  6. 6. COMPANY PROFILES

    1. 6.1 BlackRock

    2. 6.2 The Vanguard Group

    3. 6.3 State Street Global Advisors

    4. 6.4 Fidelity Investments

    5. 6.5 J.P. Morgan Asset Management

    6. 6.6 BNY Mellon Investment Management

    7. 6.7 PIMCO

    8. 6.8 FMR Corp.

    9. 6.9 Goldman Sachs

    10. 6.10 Capital Group*

  7. *List Not Exhaustive
  8. 7. FUTURE OF THE US ASSET MANAGEMENT MARKET

  9. 8. APPENDIX

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