Cerulli: Global AUM to top $70.4T by 2014

By National Underwriter

National Underwriter


By Warren S. Hersch

Global assets under management are due to exceed $70.4 trillion by the end of 2013, up more than $20 trillion since the financial crisis of 2008, according to a new report.

Cerulli Associates discloses this finding in the 12th edition of itsannual report covering global retail and retirement asset management. The 452-page study is based on information from data vendors, industry associations, global and regional surveys of asset managers, plus research meetings and industry discussions.

The report pegs household financial assets in the U.S. at $30 trillion in 2012. Global mutual fund assets under management (AUM) as a share of household financial assets represented 38.8 percent of the total—the highest of 15 developed economies surveyed by Cerulli. The breakdown by country is listed as follows:

CountryHousehold Financial Assets (U.S. $ Trillions)Mutual Funds as Percentage of HHFA
U.S.3038.8%
Japan18.03%
U.K.7.214.3%
Germany6.49.6%
China6.86.2%
Italy4.88.4%
France5.016.0%
Australia3.417.7%
Canada3.128.6%
Spain2.27.2%
S. Korea2.312.1%
Taiwan2.26.7%
Switzerland2.217.5%
Sweden1.118.1%
Singapore0.68.9%


By investment objective, Cerulli expects equities to total 44.4 percent of global AUM in 2017, up from 43.5 percent this year. Over the same period, bonds as a share of global AUM are anticipated to hit 27.5 percent in 2017, as compared to 25.1 percent this year.

Cerulli pegs other investment vehicles as a percentage of global AUM as follows:

● Money market funds: 9.0 percent in 2017 vs. 12.6 percent in 2013

● Balanced funds: 7.1 percent vs. 7.5 percent

● Alternatives: 3.8 percent vs. 3.6 percent

● Other funds: 8.1 percent vs. 7.8 percent

“Equities have always accounted for a majority of global assets, and Cerulli’s prognosis suggests that even over the next five years, that will not change,” the report states. “On the margin, however, there is a different story that has played out, with fixed income assets—primarily bonds—having seen their share rise to almost a quarter of global assets under management.”

Originally published on LifeHealthPro.com