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State Street the largest institutional manager

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.

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%.

Read more: First SentierQICVanguardIFM InvestorsPinnacle Investment ManagementState Street Global AdvisorsVFMCVictoria Funds Management CorporationRainmakerBlackRock AustraliaMacquarie Investment Management