Asset Management—What is it? An overview
Asset managers manage more than EUR 85 trillion globally. The US market is by far the largest, with a share of around 60%, followed by Europe with a share of just over 30%. Asia’s currently still relatively small market size is indicative of the emerging market status of its countries. Its growth rate of around 24% p.a. over the last five years, however, is more than twice that of the US and Europe, which nevertheless continue to grow at a respectable and stable 10% p.a.
The asset management industry is characterized by a strong global market concentration. While more than 4,200 companies operate in this sector in Europe alone, the 400 largest companies worldwide hold more than 80% of all assets under management. The top 10% of this group, i.e. the 40 largest asset managers, dominate around 50% of the market, and the top ten asset managers account for a quarter of the market share.