global fund assets reach new record

The amount of money run by the global fund management industry rose by 5% over the year so far to reach a record high, financial services interest group TheCityUK finds.

global fund assets reach new record


According to TheCityUK’s latest Fund Management Report, conventional assets under management (AUM) across the globe increased to $84.1trn by the end of September. They are now 13% above the pre-crisis record.

Raquel Hughes, strategy director at TheCityUK, said: “On the whole, the global fund management industry has recovered quickly from the sharp fall in assets under management that occurred at the outset of the credit crisis.”

The report, which is sponsored by Cannon Place, also predicted total funds will reach $85.2trn by the end of 2012. But looking at the gains for the year so far, Hughes said: “Most of this recovery has come from market performance rather than new inflows.”

The US was found to be the large store of AUM, accounting for almost half of assets. The UK came in second place with 8% of the total, followed by Japan.

Pension assets were shown to account for almost 40% of global funds, with the remainder divided equally between mutual and insurance funds. When alternative assets and funds of wealthy individuals are included, total assets across the globe are around $120trn.

“We have found that the longer term effects of the economic slowdown include more cautious investment strategies and more diversification across asset classes and geographical regions,” Hughes added.



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