Fixed Income Asset Management Market Size & Share 2023 to 2032
Market Size by Asset Class (Government Bonds, Corporate Bonds, Municipal Bonds, Mortgage-Backed Securities, Asset-Backed Securities, High-Yield Bonds), End User (Individual, Enterprise).
Report ID: GMI7131
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Published Date: October 2023
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Report Format: PDF
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Authors:
Preeti Wadhwani, Aishvarya Ambekar
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.
Fixed Income Asset Management Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
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.
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
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.
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.
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. 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
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
By End User
By Investment Strategy
The above information is provided for the following regions and countries:
Research methodology, data sources & validation process
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Our 6-step research process
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✓ Competitive dynamics and market entry/exit expectations
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