Retail investors have helped fuel the growth in the Middle East’s assets under management (AUM) industry, which recorded a double-digit increase in 2021, according to a new report by Boston Consulting Group (BCG).
Retail portfolio sizes grew by 11% and came to represent 41% of global assets under management (AUM) with $42 trillion. Institutional investments grew at a similar pace to reach $61 trillion, or 59% of the global market.
Last year, retail investors outpaced institutions as a source of capital, accounting for nine percent of total AUM in the region. Net flows from institutional investors recorded a three percent decline during the same period.
BCG said, “Retail investors have become one of the most important investor segments, outpacing institutional AUM”.
Boston Consulting Group (BSC) said in a report that the asset management industry emerged “strong” from the pandemic, crossing the $100 trillion threshold.
The region’s AUM jumped 16 percent to $1.2 trillion last year, significantly above the 10-year growth average. Global AUM reached $112 trillion during the same period, up by 12 percent, which is well above the 7 percent average of the previous two decades.
Strong net flows globally – especially from retail investors – of $2.8 trillion, and market growth meant global AUM grew by 11% to reach $103 trillion in 2020.
The growth in net flows from the retail segment has been due to better and more convenient access to investment options. “Retail clients now receive data-driven personalization advice, fractional shares, and streamlined interfaces.
