Qubit: BCG Global AUM Report 2022
According to BCG, global AUM is now $112 trillion. Alternatives is 20% of global AUM but 40% of asset management revenue.
The appetite for alternatives and passive investing is insatiable. Especially from retail investors.
“Global assets under management (AuM) rose at a generally steady pace over this period. And 2021 was even stronger: global AuM grew at 12%, to more than $112 trillion, a growth rate that was well above the 2001-2021 average of 7%. Net flow rates were also higher than average in 2021, reaching 4.4% of total AuM at the beginning of the year, or $4.4 trillion.”
“Alternative products represented more than 40% of total asset management revenue in 2021, despite comprising less than 20% of global AuM. Over the next five years we expect the revenue from alternatives to grow to more than half of all global revenues, thanks in large part to the fees that alternative assets command.”
“The first is that retail investors have become one of the most important investor segments, outpacing institutions as a source of capital. In 2021, global net flows from retail were 6.6%, significantly higher than the 2.8% that came from institutional investors. Asset managers have been able to tap deeper into the retail segment as technology has made it economically feasible to serve clients of all sizes. Many large brokerage firms are using digital distribution platforms and robo-advisors to democratize access to increasingly sophisticated investing options. Retail clients now receive data-driven personalization advice, fractional shares, and streamlined interfaces that charge low fees or no fee at all. As new technologies make it possible to expand retail services further still, asset managers should expect to be faced with new opportunities as well as challenges to the way they do business.”
Source:
From Tailwinds to Turbulence: Global Asset Management 2022
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