It didn’t always feel that way, but according to the data, it was. The Market Environment was Better in 2021Īll in all, 2021 was a pretty good year. If we can close the gap between share price and intrinsic value, a current stock owner will out-earn the underlying performance of the business. One advantage in that regard is that, despite the good returns over the past 30 years, we still trade at a discount to what we believe our businesses would be valued at if sold. This should help us achieve strong returns in the future. More importantly, our franchise is stronger and more durable today than it has ever been. Please always remember that compounding reasonable returns over long periods of time is an incredible miracle of finance. For reference, $1 million invested 30 years ago in Brookfield Asset Management is worth $111 million today. But, as an indication of the returns that can be generated over the longer term, below is our latest tabulation of annualized compound investment returns over the past 30 years. Performance in the stock market was exceptional a 48% market return (the gain on our stock in 2021) does not happen very often. 2021 HighlightsĬAPITAL RAISED IN 2021 BAM Stock Market Performance was Strong We generated a record $12.4 billion of total net income-compared with $707 million in 2020. In an inflationary environment, backbone real assets, private credit and transition-focused investments are where you want to be invested. Our asset management business continues to establish itself as one of the pre-eminent brands globally. Irrespective of global macro issues, which always arise, we own an incredible portfolio of real assets and businesses which provide both strong cash flow and inflation protection. It is still early, but with interest rates looking to continue in a low-ish range for longer, this business could become significant to us. This gives us critical mass and the regulatory licenses to continue assisting our insurance clients in many ways. With the closing of the American National deal expected before the end of the second quarter, our insurance operations will now be heading towards $50 billion of assets. The launch of Brookfield Reinsurance has been successful on many fronts.
This shows both the power of the franchise and the interest from investors in achieving net zero globally.
We will soon close our $15 billion Global Transition Fund, which we launched a little more than a year ago. This latest round of funds was not only larger, but was raised more quickly than expected. We raised $71 billion of capital during the year. On a go-forward basis, annualized asset management revenues, including carry, are now running at $7.8 billion, and we are launching new funds across all our strategies-which means that 2022 is off to a good start. Performance in our asset management business was very strong, resulting in total Distributable Earnings of $6.3 billion for the year. In 2021, we generated a record $12.4 billion of total net income-compared with $707 million in 2020.
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