Assets shrink by an estimated $2.8 trillion this year

The world’s three biggest fund managers have seen their assets shrink by an estimated $2.8 trillion this year as a global sell-off in financial markets heralds a decisive end to the industry’s golden era of growth. BlackRock, Vanguard and State Street Global Advisors have all seen their assets under management fall sharply as a result of the recent market chaos, during which US stocks fell into bear market territory after more than a decade of gains and the FTSE 100 suffered its worst one-day drop since 1987. BlackRock’s assets hit a record of more than $7.4 trillion earlier this year… But that figure has now fallen by nearly $1.4 trillion to $6 trillion, according to FT calculations, as global equities crashed… Vanguard’s assets reached $6.2 trillion in January, fell to $5.9 trillion by the end of February, and are now tracking at about $5.4 trillion based on recent market falls… State Street Global Advisors, a unit of the US custodian bank of the same name, had assets of more than $3.1 trillion earlier this year. Assuming a fall in line with US equity markets, its assets will have fallen by about $600 billion to $2.5 trillion in the past four weeks. 

Peter Smith