Top asset management firms belong to the new era of investment. A lot of people and businesses make investments with the aid of an asset management firm. These businesses manage investments and make investment choices.
A corporation that manages assets makes investments in portfolios of mutual funds and other securities. Some are designed for extremely rich investors, who typically give managers full management of their portfolios to manage their assets.
In this article, we offer an overview of some of the top asset management companies in the world, as well as what you need to know about how they operate.
How do top asset management firms operate?
Most asset management firms only work with significant institutions. These could be other businesses, major nonprofit institutions, or associations. However, many of the most well-known companies will provide services for regular investors. Asset management companies frequently generate revenue by charging fees based on the value of the assets they manage. Some people will impose flat rates.
In addition to asset management, asset management organizations frequently operate in other business sectors. This can occasionally include brokerage services.
Even though they are rivals, asset management companies sometimes only contribute a small portion of their total revenue, and they frequently collaborate in different ways. For instance, an asset management company might use its internet platform to let investors purchase and sell mutual funds from a rival business.
The Top 10 Asset Management Firms
The top asset management firms are shown below. Based on their most recent balance sheets as of February 2022, which were released, these rankings are based on the number of funds (assets under management, or AUM) that they are in charge of.
Given that they are some of the biggest financial institutions in the world, you may be familiar with some of these businesses.
Some businesses may have significantly greater reported assets under custody, including money that clients are still managing on their own.
1. BlackRock leads the list of top asset management firms
AUM: $9.464 trillion
BlackRock is not just the biggest asset management in the world; it is also one of the biggest financial organizations. The business was established in 1988, and in 1999 it went public. Through its iShares products, the company has contributed to the development of exchange-traded funds (ETFs). In 2021, iShares accounted for almost 25% of BlackRock’s assets managed.
2. The Vanguard Group
AUM: $8.4 trillion
Vanguard is renowned for its passive investing approach. This means that investments are made in mutual funds that are created to mimic the behavior of a certain index or the larger stock market. For the majority of its funds, Vanguard boasts relatively low expense ratios. 4 Vanguard provides financial planning, annuities, brokerage services, and other services in addition to asset management.
3. UBS Group
AUM: $4.432 trillion
Four divisions of the UBS Group are active globally. The company, based in Switzerland, calls itself the “only truly worldwide wealth manager.” UBS provides services for both wealth management and asset management.
4. Fidelity
AUM: $4.23 trillion
As of the third quarter of 2021, Fidelity had more than 30 million clients and served as both a discount broker and an asset manager. 6 It provides an online marketplace for buying and selling securities by individual investors. Additionally, Fidelity handles whole portfolios for clients. It gained notoriety in the summer of 2018 when it started promoting mutual funds with no expense ratio and no minimum investment amount.
5. State Street Global Advisors
AUM: $3.86 trillion
Boston-based The State Street Corporation’s subsidiary is called State Street. It administers investments for a variety of institutional clients, including associations, local governments, non-profit organizations, and even educational organizations.
6. Morgan Stanley
AUM: $3.274 trillion
In 1935, J.P. Morgan and Drexel employees and partners established Morgan Stanley on Wall Street. 9 Morgan Stanley had roughly 68,000 employees working in 39 different countries when it purchased the trading platform E*TRADE in late 2020.
7. JPMorgan Chase
AUM: $2.996 trillion
Although most people associate JPMorgan Chase with investment banking, the company also operates a successful asset management division. As part of a new custody arrangement, it had $1.3 trillion in assets transferred from BlackRock in 2017.
8. Allianz
AUM: $2.953 trillion
This German business specializes on insurance. Additionally, it runs the PIMCO and Allianz Global Investors asset management departments. As of October 2021, Global Investors and PIMCO jointly managed over $2.17 trillion in external assets.
9. Capital Group
AUM: $2.6 trillion
In Los Angeles, Capital Group was established in 1931. As of February 2022, it had approximately 7,800 individuals working in 29 offices across the globe.
10. Goldman Sachs
AUM: $2.372 trillion
Goldman Sachs provides a wide range of services, including asset management. Its clientele include hedge funds, banks and brokerages, pensions, endowments and foundations, businesses, and governments. Goldman Sachs unveiled a 10-year $750 billion climate transition and inclusive growth program in December 2020.
