The asset management industry continued its unprecedented growth trajectory in 2021, with global assets under management rising by 12% to $112 trillion, significantly above the 20-year growth average of 7%, according to a new report by Boston Consulting Group .
Yet despite rising costs, operating profit margin rose to a healthy 38% in 2021, up from 36% a year earlier, as average AuM growth outpaced the increase in costs. Global net flows from retail were 6.6% in 2021, significantly higher than the 2.8% from institutional investors. In the MEA region, AuM relative to growth in 2021 was 8% retail and 3% institutional.
This trend is expected to continue over the next five years, with revenue from alternatives forecast to grow to more than half of all global revenues in the industry by 2026. “Like other regions, it’s critical to have a clear sustainability/net zero strategy because investing in a sustainable fashion or only offering Environmental, Social and Corporate Governance products won’t be successful in the long run,” said Ferweda.