The 500 largest managers in the world already have more than a third of their assets in passive management products, according to the latest report by the Thinking Ahead Institute, linked to the consulting firm WTW, with figures from the end of last year. Specifically, The volume represented by ETFs and index funds in the total volume of its range reached 33.7%a percentage that exceeds the barrier of 31.7% that it represented in 2022.
These data are consistent with the rise of passive management in recent years, which It already amounts to almost 14.5 trillion dollars globallyaccording to data from the specialized consulting firm ETFGI. Only So far this year they have managed to attract 1.24 billion net depositsa new record for a segment that has become decisive for the investment industry.
Hence the push that managers are giving to passive funds, reorienting their product offering in one way or another to attract clients. In fact, many firms, in order to try to differentiate themselves in a market dominated by a few large firms such as BlackRock or Vanguard, which have gained share based on a lot of volume and ultra-low management fees, have fully entered the world of active asset management. ETFs. The last to announce the launch of products of this type was Robeco.
All this interest in passive management is also reflected in the growth that this class of vehicles is achieving. According to the WTW report, the asset volume in passive products grew more than double that of assets, 20.7% compared to 10% in 2023, within the group of the largest global firms, which brought together 128 trillion dollars at the close of the year. last year.
The authors of the report highlight that this interest in passive management will continue in the coming years, given the better profitability results compared to the cost of these products that investors achieve, especially in markets such as the United States, while in Europe Regulation more inclined to price transparency also favors its growth.
The study also highlights the growing investor interest in private markets (including hedge funds and units linked), which experienced a growth of 22.4% throughout 2023, the highest of all asset classes, now accounting for almost 6% of total assets.
Another point that stands out in the report is the importance that it has acquired responsible investment, which follows environmental, social and governance criteria, which experienced a growth of 15.5% in 2023 until it accounts for almost 30% of the investments within the portfolio of the largest global managers, the highest percentage in the last three years, and despite the fact that in the United States it has become a taboo subject to the point that many firms prefer to avoid naming these products this way to avoid political discrepancies.
Global leaders
Although the figures in the report are now outdated, it serves to offer an x-ray of the sector worldwide. Among the largest managers, BlackRock continues to lead the rankingfollowed by Vanguard, Fidelity, State Street Global and JP Morgan, all North American firms, as well as nine others that are in the top 20 by asset volume. Five European managers also appear in this group: UBS, Allianz, Amundi, BNP Paribas and Natixis IM (see chart above).
To find a Spanish manager you have to go down to position 99, where Banco Santander is located and much further down, in position 127, CaixaBank appears.
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