State Street Global Advisors took out first place in Rainmaker's latest rankings of local institutional investment managers by total assets to December end.
State Street ended 2020 with $175.3 billion in institutional funds under management sourced through other managers, superannuation funds and non-super investment vehicles in Australia.
The second largest was Vanguard with $165.2 billion.
State Street's continued dominance in institutional FUM contrasts with its declining market share in $102 billion ETF FUM. Vanguard this year decided to gradually unwind institutional mandates in Australia and New Zealand in lead up to its superannuation offering's launch.
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Both have retained their spots since at least September 2018.
But the third-largest institutional manager changed from Macquarie Investment Management to IFM Investors in the December quarter. IFM Investors ended $106.8 billion in total assets, while Macquarie slipped to the sixth spot in local institutional FUM.
Next on the list after IFM were BlackRock Australia ($77.1 billion), QIC ($74.9 billion), Macquarie ($73.5 billion), AMP Capital Investors ($72.5 billion), Pinnacle Investment Management ($70.2 billion), Victoria Funds Management Corporation ($64.5 billion) and First Sentier ($58.3 billion).
The total local institutional FUM across investment managers was $2.2 trillion at December end across 164 managers.
Of this, State Street had 8% market share, followed by Vanguard (7.5%), IFM (4.9%), BlackRock (3.5%), QIC (3.4%), Macquarie (3.3%), AMP Capital (3.3%), Pinnacle Investment Management (3.2%), Victoria Funds Management Corporation (2.9%) and First Sentier (2.7%).
Of these, QIC, VFMC and First Sentier lost market share in the rankings between December 2018 and December 2020.
QIC went from holding 4.1% of the market at December 2018 to 3.4% at December 2020. Macquarie's share dropped from 5.3% to 3.3%, VFMC dipped slightly from 3% to 2.9%, and First Sentier went from 3% to 2.7%.