Global assets under management
Encyclopedia
Global asset allocation or Global assets under management consists of pension funds, insurance companies and mutual funds. Other funds under management include private wealth and alternative assets such as hedge funds and private equity. Institutional clients generate the majority of funds.
Assets of the global fund management industry increased 10% in 2010 to reach a record $79.3 trillion http://www.thecityuk.com/assets/Uploads/Fund-Management-2011.pdf. Growth in recent years has largely been due to rising net flow of investment
and strong performance of equity markets. Part of the reason for the increase, in dollar
terms, has also been the decline in the value of the dollar against a number of currencies.
Around one third of private wealth is incorporated in conventional investment management (Pension funds, Mutual funds and Insurance assets). Many surveys systematically overestimate the global wealth pool. This is because they fail to separate out assets that are inaccessible for wealth management services (e.g. pension assets, real estate, dedicated liquidity, etc.)
Assets of the global fund management industry increased 10% in 2010 to reach a record $79.3 trillion http://www.thecityuk.com/assets/Uploads/Fund-Management-2011.pdf. Growth in recent years has largely been due to rising net flow of investment
Investment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
and strong performance of equity markets. Part of the reason for the increase, in dollar
Dollar
The dollar is the name of the official currency of many countries, including Australia, Belize, Canada, Ecuador, El Salvador, Hong Kong, New Zealand, Singapore, Taiwan, and the United States.-Etymology:...
terms, has also been the decline in the value of the dollar against a number of currencies.
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| Rank |
Fund type | billions USD | Figures as of |
|---|---|---|---|
| — | Private wealth High net worth individual A high-net-worth individual is a person with a high net worth. In the private banking business, these individuals typically are defined as having investable assets in excess of US$1 million. As explained below, the U.S... |
$ 32,800 | 2008 |
| 1 | Pension funds | $ 29,937 | 2010 |
| 2 | Mutual funds | $ 24,699 | 2010 |
| 3 | Insurance companies | $ 24,634 | 2010 |
| 4 | Real estate Real estate In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or... |
$ 10,000 | 2006 |
| 5 | Foreign exchange reserves Foreign exchange reserves Foreign-exchange reserves in a strict sense are 'only' the foreign currency deposits and bonds held by central banks and monetary authorities. However, the term in popular usage commonly includes foreign exchange and gold, Special Drawing Rights and International Monetary Fund reserve positions... |
$ 7,341 | February 2008 |
| 6 | Sovereign wealth fund Sovereign wealth fund A sovereign wealth fund is a state-owned investment fund composed of financial assets such as stocks, bonds, property, precious metals or other financial instruments. Sovereign wealth funds invest globally. Some of them have grabbed attention making bad investments in several Wall Street financial... s |
$ 3,980 | 2011 |
| 7 | Hedge funds | $ 1,800 | 2010 |
| 8 | Private equity fund Private equity Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange.... s |
$ 1,600 | 2009 |
| 9 | REITs | $ 764 | 2007 |
Around one third of private wealth is incorporated in conventional investment management (Pension funds, Mutual funds and Insurance assets). Many surveys systematically overestimate the global wealth pool. This is because they fail to separate out assets that are inaccessible for wealth management services (e.g. pension assets, real estate, dedicated liquidity, etc.)
Source
- IMF - Global asset allocation
- TheCityUK - Fund management
- Morgan Stanley - World's $165 trillion worth of traded securities
- http://www.sovereigninvestor.org The Sovereign Investment Council, a trade group for sovereign investors and financial firms that serve sovereign investment funds.