The world’s 50 largest asset managers accounted for more than $38 trillion in assets under management at the end of 2012, $4 trillion more than the year before, as the biggest firms in the industry continued to get even bigger, says a Cerulli Associates report released Wednesday.
Eleven money managers have assets over $1 trillion versus nine a year ago, and twice as many firms have more than $2 trillion in assets, at four versus two, Cerulli reported.
The world’s largest money manager, BlackRock, is still the only global asset manager with assets in excess of $3 trillion, according to the Cerulli report, “Global Markets 2013.”
While the trend for consolidation in the asset management industry is not a new one, “there has definitely been a quickening of pace since the financial crisis,” said Shiv Taneja, the firm’s London-based managing director for international research, in a statement, noting that the global financial crisis took $10 trillion off the table within a few months in 2008, leading to a consolidation of the industry as brand and balance sheet took center stage.
This benefited the bigger, better capitalized managers, Taneja said, which has created some concerns. “Big firms can do many good — and not so good — things. Regulators have a huge role to play here, and in their desire to boost investor protection, a good thing, should ensure they do not make it tough on smaller firms.”