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How do the largest fund managers stack up?

Fund Managers are a very important part of the investment landscape. Pension funding systems around the world heavily invest via fund managers, be they internal or externally appointed. There are also some asset sectors even the professionals like sovereign wealth funds outsource to specialists, for example alternative investments such as hedge funds or direct physical assets. Alternative assets typically require specialist skills to ensure the assets are managed and produce desired outcomes from the assets being held.

Most Australian and Kiwi investors have exposure to a managed fund (also known as a mutual fund) via superannuation and KiwiSaver accounts. For Australians, the predominant structure is an Australian Unit Trust (AUT) and for Kiwis this is via Portfolio Investment Entities (PIE). Most funds held within pension systems are diversified funds, largely because they are a default fund for the scheme provider. For example, on 1 December 2021 not only did the KiwiSaver default fund providers change, but so did the investment fund type, changing from conservative funds to balanced funds for the first time since KiwiSaver started on 2 July 2007.

An article produced by The Balance caught our eye, as there will be some names that are familiar to investors across Australia and New Zealand. In some cases, investment firm names that are familiar may be owned by another business, or manage total assets that dwarf most countries’ GDP.

Table: Nominal GDP versus Assets Under Management (AUM)

The purpose of the table above is not to try and draw a comparison between GDP and AUM, but to provide some context to the  AUM of the world’s largest investment managers. To say the size of the assets being managed is significant is an understatement. Only the annual nominal GDP – gross domestic product based on current prices and not adjusted for inflation – of the USA and China exceed each of the asset managers on the list.

Of note are the following takeouts:

In several cases the name of the company in the list is not necessarily the name that is most known in the marketplace by investors.


Research IP delivers high quality investment fund research and consultancy services to financial advisers, charities & NFPs and the broader financial services industry. Our experience spans well over 20 years working directly across the multiple facets of finance, so we understand the key drivers and challenges for managers, as well as the impact for investors and the broader industry.

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