Asset management concentration rises as PIF expands US portfolio

The US asset management industry is seeing increased concentration among top firms. According to a Morningstar report, BlackRock, Vanguard, and Fidelity control 52% of the mutual fund and ETF assets under management (AUM) among the 150 largest firms. This is an increase from 43% in 2014 when Capital Group was also a major player. In the passive investment sector, concentration is even higher, with five firms managing 89% of US mutual fund and ETF assets. Vanguard leads the passive market with 44% share, followed by BlackRock at 21%.

Separately, Saudi Arabia’s Public Investment Fund (PIF) significantly expanded its US 13F portfolio, growing from $12 billion to $37.9 billion. The fund’s holdings are now heavily concentrated in five positions, with Space Exploration Technologies (SpaceX) accounting for approximately 70% of the portfolio. Other notable holdings include Uber and Electronic Arts, while the fund has made incremental increases in Lucid Group.