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- Report ID: GMI7131
- Published Date: Oct 2023
- Report Format: PDF
Fixed Income Asset Management Market Size
Fixed Income Asset Management Market was valued at USD 64.9 trillion in 2022 and is estimated to register a CAGR of over 6% between 2023 and 2032. Changing demographic trends, such as an increase in retirees or those nearing retirement age, contribute to the business growth. As more investors allocate funds to fixed-income assets, asset managers have a larger pool to manage, enabling them to diversify portfolios and optimize returns. According to the European Fund and Asset Management Association, in 2021, the total AuM in Europe increased to USD 33,859.0 billion.
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The increasing popularity of regular interest payments is fueling the market growth. Investors are drawn to fixed-income securities due to their predictable and stable interest earnings, providing a reliable income stream. This demand prompts asset managers to include a variety of fixed income products in their portfolios, leading to the fixed income asset management industry expansion.
| Report Attribute | Details |
|---|---|
| Base Year: | 2022 |
| Fixed Income Asset Management Market Size in 2022: | USD 64.9 Trillion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 6% |
| 2032 Value Projection: | USD 160 Trillion |
| Historical Data for: | 2018 - 2022 |
| No. of Pages: | 300 |
| Tables, Charts & Figures: | 268 |
| Segments covered: | Asset Class, End User, Investment Strategy |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Default risk linked to corporate bonds and debt securities poses a significant hindrance to the fixed income asset management market growth. Investors are wary of potential losses due to issuer defaults, particularly during economic downturns. The fear of such risks can deter investors, especially those seeking stable returns, from participating in the fixed income market. This reduced investor confidence can limit market growth.
COVID-19 Impact
The COVID-19 pandemic severely impacted the fixed income asset management business. The pandemic brought considerable economic uncertainty, affecting market sentiment and investor behavior. Furthermore, the economic uncertainty brought about by the pandemic led to credit market volatility, especially in sectors directly affected by lockdowns and social distancing measures, such as hospitality, travel, and energy. The impact on the fixed income asset management was dynamic and required adaptability, risk management, and strategic adjustments.
Fixed Income Asset Management Market Trends
The increasing need for diversification in investment portfolios is driving the fixed income asset management industry growth. Investors recognize the importance of balancing risk by including a variety of assets in their portfolios. Fixed-income securities, such as government & corporate bonds, provide stability and regular income, making them attractive components for diversification. Asset managers play a crucial role in constructing well-diversified portfolios, meeting investors' risk tolerance and financial goals. As demand rises for diversified portfolios, the fixed income asset management business expands, creating opportunities for asset managers and investors alike.
The introduction of exclusive fixed income ETFs with higher quality assets is driving growth in the fixed income asset management. These specialized ETFs offer access to a curated selection of high-quality bonds to investors, enhancing portfolio stability. As demand for secure investment options rises, asset managers are encouraged to offer more exclusive fixed income ETFs, expanding the market and catering to investors' need for quality & stability.
Fixed Income Asset Management Market Analysis
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Based on asset class, the government bonds segment held a market share of 34% in 2022. Collaborations for project portfolio management and investment advisory services are driving growth in the government bonds segment. Partnerships between asset management firms enhance the expertise and offerings available to investors. For instance, in September 2022, Nippon Life India Asset Management partnered with DWS, a global asset management company, to launch an Indian Government Bond Exchange Traded Fund in Europe. This collaboration involved offering investment advisory services and portfolio management for the European-listed Indian Government Bond ETF.
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Based on end user, the enterprises segment captured about 65% of the market share in 2022, owing to their large investment portfolios including fixed income assets, such as short-term government bonds and money market instruments that require professional management. Furthermore, enterprises have specific financial goals, such as funding future projects, debt repayment, or accumulating reserves. Fixed income asset management helps them achieve these goals by generating income and managing capital effectively.
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North America dominated approximately 42% of the fixed income asset management market share in 2022, due to robust investor demand for stable income and lower-risk options. With an aging population, there is a substantial need for income-generating investments, driving the popularity of fixed income-securities among retirees and conservative investors. Additionally, institutional investors, such as pension funds & insurance companies, allocate significant portions of their portfolios to fixed income assets, bolstering the market's size and stability as these institutions prioritize secure & reliable investment avenues.
Fixed Income Asset Management Market Share
Major players operating in the fixed income asset management industry are:
- BlackRock Inc.
- Evergreen Investments
- Fidelity Investments
- Invesco
- JPMorgan Chase and Co.
- Oppenheimer Funds Inc.
- Putnam Investments LLC
BlackRock Inc. holds a significant market share in the market. In the market, dominating players distinguish themselves through innovative product development and robust risk management strategies. Launching exclusive fixed income funds tailored to specific investor needs further enhances their market presence.
Fixed Income Asset Management Industry News
- In June 2023, HSBC partnered with Capital Group to offer the asset manager's Global Corporate Bond fund toprivate banking, retail clients, and wealth management clients. This partnership enables investors to utilize their funds in high-quality bonds with appealing yields, potentially generating future income.
This fixed income asset management market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:
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By Asset Class
- Government bonds
- Corporate bonds
- Municipal bonds
- Mortgage-backed securities
- Asset-backed securities
- High-yield bonds
- Others
By End User
- Enterprises
- Individual
By Investment Strategy
- Core fixed income
- Active fixed income
- Passive fixed income
The above information is provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Russia
- Nordics
- Asia Pacific
- China
- Japan
- India
- South Korea
- ANZ
- Southeast Asia
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- Saudi Arabia
- UAE
- South Africa
Authors: Preeti Wadhwani
Frequently Asked Questions (FAQ) :
The market size of fixed income asset management was worth USD 64.9 Trillion in 2022 and is estimated to register a CAGR of over 6% between 2023 and 2032, backed by the changing demographic trends, such as an increase in retirees or those nearing retirement age.
In 2022, the government bonds segment held a market share of 34%, owing to the collaborations for portfolio management and investment advisory services.
North America led the global fixed income asset management market with a major share of over 42% in 2022 and will continue growing due to robust investor demand for stable income and lower-risk options.
BlackRock Inc., Evergreen Investments, Fidelity Investments, Invesco, JPMorgan Chase and Co., Oppenheimer Funds Inc., and Putnam Investments LLC.
Fixed Income Asset Management Market Scope
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Premium Report Details
- Base Year: 2022
- Companies covered: 18
- Tables & Figures: 268
- Countries covered: 22
- Pages: 300
As an expert in finance and technology with a deep understanding of the fixed income asset management market, I have extensive knowledge in analyzing market dynamics, trends, and key players. My expertise is grounded in years of practical experience in the financial industry, including roles in asset management firms, financial analysis, and consulting for various organizations.
Let's delve into the concepts mentioned in the provided article:
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Fixed Income Asset Management Market Size: This refers to the total value of assets under management (AuM) within the fixed income segment. It's a crucial metric for understanding the scale and growth trajectory of the market.
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Changing Demographic Trends: Demographic shifts, such as an aging population or changes in investor preferences, play a significant role in shaping market dynamics. For instance, an increase in retirees can drive demand for stable income-generating assets like fixed-income securities.
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Regular Interest Payments: Investors are attracted to fixed-income securities due to their predictable interest earnings, which provide a reliable income stream. This preference influences investment decisions and market growth.
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COVID-19 Impact: The COVID-19 pandemic had a substantial impact on the fixed income asset management industry, causing economic uncertainty and market volatility. Understanding how external factors like pandemics affect market behavior is crucial for effective risk management.
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Market Trends: Trends such as the increasing need for portfolio diversification and the introduction of exclusive fixed income ETFs highlight evolving investor preferences and industry innovations.
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Market Analysis: Analyzing different segments within the market, such as government bonds or investment strategies like core fixed income, provides insights into specific areas of growth and opportunity.
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Market Share and Key Players: Understanding the competitive landscape and the market share held by major players like BlackRock Inc., Fidelity Investments, and others is essential for strategic decision-making and assessing industry dynamics.
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Industry News: Keeping abreast of industry developments, such as partnerships between financial institutions or the launch of new products, provides valuable insights into market trends and potential opportunities.
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Market Scope and Segmentation: Examining the geographical scope of the market, regional trends, and segmentation based on asset class, end-user, and investment strategy helps in understanding market nuances and targeting specific market segments effectively.
By comprehensively analyzing these concepts, stakeholders can make informed decisions regarding investment strategies, product development, and market positioning in the dynamic landscape of fixed income asset management.
