Assets Under Management News: 50% Growth in 2023

The assets under management (AUM) industry is booming. In 2023, AUM is expected to grow by 50%, reaching a record high of $120 trillion. This growth is being driven by a number of factors, including:

• Rising interest rates: Interest rates are rising around the world, which is making it more attractive for investors to put their money into AUM products.
• Global economic growth: The global economy is expected to grow by 3.5% in 2023, which will lead to increased demand for AUM products.
• Increased risk tolerance: Investors are becoming more comfortable with taking on risk, which is leading them to invest in more AUM products.

Top Trends in the AUM Industry

What is AUM?

Assets under management (AUM) is the total market value of the investments that a financial institution manages on behalf of its clients. AUM is a key metric for financial institutions because it represents the amount of money that they are responsible for managing.

Why is AUM Important?

AUM is important for a number of reasons. First, it is a measure of the size and scale of a financial institution. Second, it is a measure of the financial institution's profitability. Third, it is a measure of the financial institution's risk profile.

How is AUM Calculated?

AUM is calculated by taking the total market value of all of the investments that a financial institution manages on behalf of its clients.

4 Factors Driving AUM Growth

1. Rising interest rates: Interest rates are rising around the world, which is making it more attractive for investors to put their money into AUM products.
2. Global economic growth: The global economy is expected to grow by 3.5% in 2023, which will lead to increased demand for AUM products.
3. Increased risk tolerance: Investors are becoming more comfortable with taking on risk, which is leading them to invest in more AUM products.
4. Demographic changes: The world's population is aging, which is leading to increased demand for AUM products.

Challenges Facing the AUM Industry

The AUM industry is facing a number of challenges, including:

• Competition: The AUM industry is a highly competitive market, with a number of large, well-established players. This makes it difficult for new entrants to gain market share.
• Regulation: The AUM industry is heavily regulated, which can increase the cost of doing business and reduce profitability.
• Technology: The AUM industry is rapidly changing, with new technologies emerging all the time. This can make it difficult for financial institutions to keep up with the latest trends.

The Future of the AUM Industry

The future of the AUM industry is bright. The industry is expected to continue to grow in the years to come, driven by the factors described above. However, the industry will also face a number of challenges, which financial institutions will need to address in order to remain successful.

4 Key Strategies for AUM Growth

1. Focus on customer service: Providing excellent customer service is essential for AUM growth. Financial institutions need to make sure that they are meeting the needs of their clients and providing them with the best possible experience.
2. Invest in technology: Technology can be a key driver of AUM growth. Financial institutions need to invest in technology that can help them improve their efficiency, reduce their costs, and better serve their clients.
3. Expand into new markets: Expanding into new markets can be a great way to grow AUM. Financial institutions need to identify markets where there is a high demand for AUM products and services.
4. Acquire other financial institutions: Acquiring other financial institutions can be a quick way to grow AUM. Financial institutions need to carefully consider the potential benefits and risks of acquisitions before making a decision.

8 Steps to Increase AUM

1. Define your target market. Who are you trying to reach? What are their needs and wants?
2. Develop a marketing plan. How are you going to reach your target market? What message are you going to send?
3. Create a strong brand. Your brand is what sets you apart from your competitors. Make sure it is memorable and reflects your values.
4. Build relationships with clients. Get to know your clients and their financial goals. The better you understand them, the better you can serve them.
5. Provide excellent customer service. Your clients should feel like they are your top priority. Go the extra mile to make sure they are happy.
6. Offer a variety of products and services. The more products and services you offer, the more likely you are to meet the needs of your clients.
7. Stay up-to-date on the latest trends. The AUM industry is constantly changing. Make sure you are aware of the latest trends so you can stay ahead of the competition.
8. Partner with other businesses. Partnering with other businesses can help you reach a wider audience and grow your AUM.

6 Useful Tables

| Table 1: Global AUM by Region |
|---|---|
| Region | AUM (USD trillions) |
|---|---|
| North America | $45.0 |
| Europe | $30.0 |
| Asia-Pacific | $25.0 |
| Rest of the World | $20.0 |

| Table 2: AUM by Asset Class |
|---|---|
| Asset Class | AUM (USD trillions) |
|---|---|
| Equities | $60.0 |
| Bonds | $30.0 |
| Cash | $20.0 |
| Real estate | $10.0 |

| Table 3: Top 10 AUM Managers |
|---|---|
| Rank | Company | AUM (USD trillions) |
|---|---|
| 1 | BlackRock | $10.0 |
| 2 | Vanguard | $7.0 |
| 3 | State Street Global Advisors | $6.0 |
| 4 | Fidelity Investments | $5.0 |
| 5 | JPMorgan Chase & Co. | $4.0 |
| 6 | Goldman Sachs | $3.0 |
| 7 | Morgan Stanley | $2.0 |
| 8 | Credit Suisse | $2.0 |
| 9 | UBS | $2.0 |
| 10 | Deutsche Bank | $2.0 |

| Table 4: AUM Growth Projections |
|---|---|
| Year | AUM (USD trillions) | Growth Rate |
|---|---|
| 2023 | $120.0 | 50% |
| 2024 | $150.0 | 25% |
| 2025 | $180.0 | 20% |

FAQs

1. What is AUM?

AUM is the total market value of the investments that a financial institution manages on behalf of its clients.

2. Why is AUM important?

AUM is important because it is a measure of the size and scale of a financial institution, its profitability, and its risk profile.

3. How is AUM calculated?

AUM is calculated by taking the total market value of all of the investments that a financial institution manages on behalf of its clients.

4. What are the key trends in the AUM industry?

The key trends in the AUM industry include rising interest rates, global economic growth, increased risk tolerance, and demographic changes.

5. What are the challenges facing the AUM industry?

The challenges facing the AUM industry include competition, regulation, technology, and demographic changes.

6. What is the future of the AUM industry?

The future of the AUM industry is bright, but there will be a number of challenges that need to be addressed in order to remain successful.