BlackRock(US:BLK) GUOTAI HAITONG SECURITIES·2025-08-14 13:04Group 1: Market Overview - The global asset management industry is projected to reach an AUM of $128 trillion in 2024, marking a 12% increase from 2023, indicating a gradual recovery from previous declines[1] - The industry experienced a revenue growth of approximately $58 billion in 2024, with over 70% (around $42 billion) attributed to market gains and the remaining 30% (approximately $16 billion) from net inflows, highlighting the industry's sensitivity to external market conditions[1] - The U.S. asset management sector is at a transformative crossroads, driven by changes in product supply and distribution, accelerated industry consolidation, and pressure to restructure cost structures[1] Group 2: Industry Trends - The shift towards low-cost, high-transparency investment tools has made ETFs the fastest-growing product type, with U.S. ETF assets surpassing $9 trillion by May 2024[1] - The asset management industry saw a significant increase in mergers and acquisitions, with 37 transactions in 2024, a 48% increase from 25 in 2023, and a total transaction value of $16.3 billion[1] - Cost structure re-evaluation is becoming essential, with firms adopting zero-based budgeting and focusing on investment management, sales networks, and IT systems to enhance efficiency[1] Group 3: Governance and Participation - The U.S. asset management industry is increasingly viewing fund participation in corporate governance as a core fiduciary responsibility, evolving from passive voting to active engagement and strategy formulation[1] - BlackRock has set a precedent in governance participation through proxy voting, supporting approximately 90% of board elections in 2024, while opposing around 10% based on governance-related concerns[1] - The industry is moving towards a governance-driven model, emphasizing high voting participation rates, deep corporate dialogue, and technology-enabled governance efficiency[1]