The world’s 500 largest asset managers saw their assets grow 9.4% to a record US$139.9 trillion last year from increased passive investment strategies and adoption of artificial intelligence, according to the Thinking Ahead Institute.

They collectively managed $54.56 trillion of passive assets or almost 40% of the total, the UK non-profit investment think tank says in a report on November 10.

Passively managed assets were up 6.1% from 2023 but actively managed assets declined 3.6% to $85.34 trillion.

North American firms accounted for $88.2 trillion or 63% of the total assets.

The share of assets managed by the top 20 firms, the majority of them from the US, rose to 47% from 45.5% in 2023.

According to the report, AI has become an “enabler” across the industry, with 47% of the 500 managers investing in the technology to improve operations and customer service.

“We’re seeing a convergence of forces, from the rise of passive strategies and private markets to the growing influence of AI. These trends are reshaping the very foundations of asset management,” says Jessica Gao, a director of Thinking Ahead Institute.

The top three firms by assets in 2024 were all from the US, led by BlackRock Inc, the world’s largest, managing $11.55 trillion.

Vanguard and Fidelity Investments ranked second and third with $10.1 trillion and $5.5 trillion, respectively.