Fixed Income Asset Management Market Size - By Asset Class (Government Bonds, Corporate Bonds, Municipal Bonds, Mortgage-Backed Securities, Asset-Backed Securities, High-Yield Bonds), End User (Individual, Enterprise), Investment Strategy & Forecast 2023 - 2032

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.
 

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.
• 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 to private 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