Global fund management industry AUM climbs by 5% in 2012

USA America Dollars 480

The global fund management industry saw assets under management grow by 5 per cent from $79.8trn to $84.1trn during the first nine months of 2012, according to a report by TheCityUK.

The City trade association have predicted assets under management will reach $85.2trn by the end of the year in its Fund Management Report.

However, combined with alternative assets and funds of wealthy individuals the total assets are nearer $120trn.

The US is the largest source of funds with 46 per cent of all conventional assets under management, or $36.3trn. The UK is the second largest centre in the world with $6.6trn and 8 per cent of the total.

TheCityUK Fund Management Report 2012

The UK saw assets under management grow by 4 per cent from its 2011 figure of $5.1trn during the first nine months of 2012, and is likely to reach 5 per cent by the end of the year.

TheCityUK strategy director Raquel Hughes says: “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.

“Most of this recovery has come from market performance rather than new inflows.”

She adds: “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.

“There is also a worldwide trend for fund managers to operate independently of banks and insurance companies.”