Total assets under management (AUM) at the world’s largest 500 asset managers reached $140trn at the end of 2024, surpassing the previous record of $131trn set in 2021.
This is according to a study from the Thinking Ahead Institute, which found that the recovery was driven mostly by North American asset managers which saw 13% year-on-year growth.
Assets from the rest of the world category, which includes China, India and Brazil, also saw assets rise 7.7% year-over-year. Managers from Europe saw a slight increase of 3.9%, but managers in Japan saw a 9.5% decline.
Claire Shen, director, investments at WTW, said that Asia’s asset management landscape is undergoing transformation.
“While Japan saw a 9.5% decline in AUM in 2024, largely driven by currency movements, other countries like China and India are cultivating domestic champions and show continued AUM growth,” she said.
“Asian investors are increasingly diversifying into private markets, alternatives and sustainability-themed strategies.”
The study also found that passive investment strategies continue to attract more assets, now accounting for 39% of total AUM, up 6.1% from the previous year. Meanwhile, actively managed assets fell 3.6% to account for 61%.
The decline of actively managed assets has been partially offset by the rapid rise of private-market specialists, whose AUM growth has outpaced traditional managers.
The study noted that alternative investment manager Brookfield saw its AUM grow from $240bn in 2016 to over $1trn in 2024, marking a 20% annualised increase over eight years, driven by investor demand for private credit, infrastructure, and real estate strategies.
Jessica Gao, director of The Thinking Ahead Institute said: “This study paints a vivid picture of an industry in transition. We’re seeing a convergence of forces, from the rise of passive strategies and private markets to the growing influence of AI.”
