Investing February 11, 2002

Global AUM Growth Continues to Slow

February 11, 2002 (PLANSPONSOR.com) - Last year, global assets under management edged up by a scant 0.2%, or less than $100 billion, according to estimates from consultant Cerulli Associates (CA).
Reported by

By the close of the year, assets under management worldwide totaled almost $34 trillion.

According to CA’s Global Asset Management Survey results, the pace of asset growth has slowed markedly since 1997, when assets under management grew by 23.3%. In fact,

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  • in 1998, assets under management grew by 17%
  • in 1999, that growth rate slowed to 14%
  • in 2000, assets under management grew by only 4.1%.

Further, the survey found that manager-of-managers asset management products, products that evaluate and select a range of asset managers, and parcels out portions of its pooled funds to them, and fund of funds, or pooled funds that invest in a group of underlying pooled funds, are enjoying “explosive” growth rates, especially in Europe.

Estimates show that worldwide:

  • multi-manager funds hold some $326.2 billion in assets
  • while fund of funds products hold $105.1 billion.

Survey findings also reveal that 27% of assets under management are held in index or passively managed portfolio. CA estimates that the index fund management industry has a potential value of $9 trillion.

The survey sample comprised 27 companies.

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