The Ultimate List of Investment Portfolio Management Statistics, Trends And Facts 2023

Investing in the stock market can be a daunting task for many people, especially when it comes to managing their investment portfolio.

To help you make informed decisions, we’ve compiled investment portfolio management statistics that can help you achieve successful investing.

From asset allocation to risk management, these statistics provide valuable insights into the world of investment portfolio management.

Investment Portfolio Management stats

Table 1: Investment Portfolio Management Market Statistics

Statistics	Data
Employment growth projection (2020-2030)	17%
Average industry profit margin	x.x%
Alternatives asset management increase	0.5%
CVAR calculated by Zoonova at 95% and 99% confidence levels	Yes
Historical VAR calculated by Zoonova using 2 years of daily prices and returns at 95% and 99% level of confidence	Yes
Expected return of stock calculated using CAPM model	17%
Positive alpha indicating portfolio outperformance	1%
VaR indicating the chance of losing entire investment in any given month	5%
Percentage of working capital tied up in inventory in the United States	7%
Percentage of salespeople who experienced asset theft in the past 2 years	33%
Percentage of maintenance work that should be preventive	75%
Percentage of company data not protected despite requiring strong security	35%
Increase in harmful administration errors after tagging system implementation	41%
Fund return (2021)	13.5%

Table 2: Asset Management System Market

Statistics	Data
Compound annual growth rate projection (2020-2025)	10.3%
Money market funds share (1992-2000)	Fell from 39.5% to 12.0% and stabilised around 17% in the last three years with data available

Table 3: Relational Investing and Funds and Asset Management Statistics

Statistics	Data
Definition of investment funds reporting standards by ECB/2013/38	Yes
Percentage growth in net assets managed in investment funds (average)	14.7%
Breakdown of average growth rate of net assets managed in investment funds (non UCITS and UCITS)	16.1% and 14.4%
Bridgeway’s donation of 50% profits to organizations creating positive change in the world	Yes
Statistical classification of economic activities in the EU for funds and asset management	Yes

Table 4: Project Portfolio Management Market Statistics

Statistics	Data
Percentage of organizations still not using digital technology	45%
Percentage of high performing organizations using project portfolio management	89%
Percentage of companies relying on paperwork for project management	31%
Percentage of companies with PPM practice implementation	More than 70%
Increase in successful program completion by companies with PPM practice implementation	Up to 40%
Percentage of project failures due to undefined risks	30%
Increase in overall project success rate (business goals, time, and budget)	13-15%

Table 5: Managed Portfolio Return Calculation

Statistics	Data
Weighting of portfolio for assets A and B	60% and 40%
Standard deviation of asset A and B	20% and 10%
Correlation of asset A and B	0.85
Expected return of portfolio calculated using weighted average of expected returns of assets A and B	16%
Expected standard deviation of portfolio calculated using the formula for rZ	15.5%

• 1. The global asset management industry was valued at $94.7 trillion in 2020.
• 2. In 2020, institutional investors held 65% of total assets under management globally.
• 3. In 2020, the largest investment manager globally was BlackRock, with $8.67 trillion in assets under management.
• 4. In 2020, passive funds represented 23% of all assets under management globally.
• 5. 88% of actively managed large-cap funds underperformed the S&P 500 index in 2020.
• 6. 97% of large-cap growth mutual funds underperformed the S&P 500 index in 2020.
• 7. The average expense ratio for actively managed funds was 0.67% in 2020.
• 8. The average expense ratio for passive funds was 0.15% in 2020.
• 9. 91% of financial advisors use model portfolios for their clients.
• 10. Model portfolios can save financial advisors up to 90% in investment management costs.
• 11. In 2020, the average allocation to equities in a balanced portfolio was 49%.
• 12. In 2020, the average allocation to fixed income in a balanced portfolio was 33%.
• 13. In 2020, the average allocation to alternatives in a balanced portfolio was 10%.
• 14. In 2020, the average allocation to cash in a balanced portfolio was 8%.
• 15. 55% of high-net-worth investors plan to increase their allocations to alternatives in the next five years.
• 16. In 2020, the average allocation to private equity in a high-net-worth portfolio was 15%.
• 17. In 2020, the average allocation to hedge funds in a high-net-worth portfolio was 7%.
• 18. In 2020, the average allocation to real estate in a high-net-worth portfolio was 20%.
• 19. The average annual return for hedge funds was 11.6% from 1997 to 2020.
• 20. The average annual return for private equity funds was 14.9% from 2006 to 2020.
• 21. In 2020, the average allocation to socially responsible investments in a high-net-worth portfolio was 35%.

The Basics of Investment Portfolio Management

Investment portfolio management is the process of selecting the right combination of assets, such as stocks, bonds, and other securities, to achieve the desired investment goals. Here are some statistics that shed light on the basics of investment portfolio management.

Asset Allocation

1. Asset allocation is the most important factor in determining the performance of an investment portfolio, accounting for 90% of the variability in returns.
2. Studies show that a diversified portfolio can reduce risk by up to 85% while maintaining the same level of returns.
3. The average investor’s asset allocation is heavily skewed towards equities, with 55% of their portfolio invested in stocks.

Portfolio Performance

4. The average annual return for a balanced portfolio (60% stocks and 40% bonds) over the past 10 years is 7.2%.
5. According to a survey, only 1 in 20 actively managed mutual funds outperformed their benchmark index over a 10-year period.
6. In contrast, index funds outperform actively managed funds by 70% over a 10-year period.

Risk Management

7. The Sharpe ratio is the most widely used measure of risk-adjusted return. A higher Sharpe ratio indicates better risk-adjusted performance.
8. Over a 30-year period, stocks have outperformed bonds, but they have also been more volatile, with a standard deviation of 18% compared to 7% for bonds.
9. The maximum drawdown is the maximum loss from a peak to a trough in a portfolio. The average maximum drawdown for a diversified portfolio is 14%.

Trends in Investment Portfolio Management

As the investment landscape evolves, new trends are emerging in investment portfolio management. Here are some statistics that highlight the latest trends in the industry.

Sustainable Investing

10. Sustainable investing has become increasingly popular, with the global sustainable investment market reaching $35.3 trillion in 2020.
11. Environmental, social, and governance (ESG) investing is the most common type of sustainable investing, with assets under management reaching $1.7 trillion in 2020.
12. According to a survey, 83% of millennials are interested in sustainable investing.

Passive Investing

13. Passive investing has gained traction over the years, with the total assets under management in index funds reaching $11.5 trillion in 2020.
14. Exchange-traded funds (ETFs) have seen a surge in popularity, with assets under management reaching $7.7 trillion in 2020.
15. A survey found that 64% of financial advisors prefer passive investing.

Robo-Advisors

16. Robo-advisors are becoming increasingly popular, with the assets under management for robo-advisors expected to reach $4.4 trillion by 2025.
17. A survey found that 66% of investors are comfortable using robo-advisors for their investments.
18. Robo-advisors are expected to account for 10% of all investment assets by 2025.