Asset management companies are often used to help investors and organizations. These companies take control of investments and make investment choices.
An asset management company manages portfolios of mutual funds and other securities. Many are targeted at wealthy investors, who typically hand over complete control of their portfolios and assets to managers.
This article will provide information about the top investment management companies in the world and what you need to learn about their operations.
What is the Work of Big Asset Management Companies?
Asset managers are not qualified to deal with large institutions. These could be large corporations, nonprofit organizations, and associations. Many of the most well-known firms offer services to average investors. Many asset management companies make their money by charging fees based on the assets they manage. Others may charge flat fees.
Asset management companies may have other business lines than just asset management. This may include brokerage services.
Asset management can make up a small percentage of a company’s revenues. In these cases, they often work together in different ways even though they may be competitors. One asset management company may offer investors the opportunity to purchase and sell mutual funds from a competitor through its online platform.
10 Largest Investment Management Companies
Here are the top asset management firms. These rankings are based upon the amount of assets ( assets under administration or AUM ) they control based on their most recent balance sheets as of February 20,222.
References:
- https://www.advratings.com/top-asset-management-firms
- https://www.blackrock.com/corporate/literature/annual-report/blackrock-2020-annual-report.pdf
- https://investor.vanguard.com/investor-resources-education/education/expense-ratio
- https://www.ubs.com/global/en/our-firm.html
- https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/about-fidelity/2021Q3_Fidelity-Investments-Highlights.pdf
- https://www.ssga.com/us/en/individual/etfs/about-us/who-we-are
- https://www.morganstanley.com/about-us-ir/shareholder/10k2020/10k1220.pdf
- https://www.jpmorganchase.com/content/dam/jpmc/jpmorgan-chase-and-co/investor-relations/documents/annualreport-2017.pdf
- https://www.allianz.com/en/press/news/company/brands/211020_Allianz-brand-value-climbs-17-percent-to-over-15-billion-USD-in-one-year.html
- https://www.capitalgroup.com/pcs/who-we-are.html
- https://www.goldmansachs.com/what-we-do/index.html
These companies are among the most important financial institutions globally so you may be familiar with them.
1. BlackRock
Assets Under Mgt: $9.464 Trillion
BlackRock is more than just the largest asset manager in the world. It’s also one of the largest financial institutions. The company was established in 1988 and made public in 1999.
Through its iShares products, the firm has played a significant role in encouraging the growth of ETFs (exchange-traded funds) to increase their popularity. 3 In 2021, iShares accounted for more than 25% of BlackRock’s assets.
2. The Vanguard Group
Assets Under Mgt:Â $8.4 Trillion
Vanguard is well-known for its passive investing strategy. This is when money is invested in mutual funds that mirror the activities of specific indexes or the wider stock market.
Vanguard boasts low expense ratios for many of its funds. 4 In addition to asset management, Vanguard also offers brokerage services, financial planning, and annuities.
3. UBS Group
Assets Under Mgt:Â $4.432 Trillion
UBS Group operates four divisions around the globe. UBS Group, a Swiss-based company, describes itself as “the only truly global wealth manager.”
UBS offers wealth management and asset management services.
4. Fidelity
Assets Under Mgt: $4.23 Trillion
Fidelity, an asset manager, and a Discount Broker, has more than 30,000,000 customers as of the 2021 third quarter. 6 They offer an online platform that allows individual investors to purchase and sell securities.
Fidelity can also manage entire portfolios for clients. Fidelity also manages entire portfolios on behalf of clients.
5. State Street Global Advisors
Assets Under Mgt : $3.86 Trillion
State Street Corporation has a subsidiary in Boston called State Street. State Street Corporation has a subsidiary in Boston called State Street.
6. Morgan Stanley
Assets Under Mgt : $3.274 Trillion
Morgan Stanley was founded by partners and employees of the J.P. Morgan, Drexel and Drexel firms in 1935. 9 In late 2020, Morgan Stanley acquired E*TRADE, an investment platform that had approximately 68,000 employees across 39 countries.
7. JPMorgan Chase
Assets Under Mgt $2.996 Trillion
JPMorgan Chase is most commonly thought of as an investment bank. However, it also has a strong asset management business. It moved $1.3 trillion from BlackRock in 2017 as part of a new custody agreement
8. Allianz
Assets Under Mgt $2.953 Trillion
The German company is primarily an insurance provider. It also has two asset management divisions, Allianz Global Investors (PIMCO) and PIMCO. Global Investors and PIMCO together manage approximately $2.17 trillion in third-party assets as at October 2021.
9. Capital Group
Assets Under Mgt: $2.6 Trillion
Capital Group was established in Los Angeles in 1931. Capital Group was founded in Los Angeles in 1931.
10. Goldman Sachs
Assets Under Mgt $2.372 Trillion
Goldman Sachs offers many services, including asset management. It serves the following types of clients:
- Hedge funds
- Banks and brokerages
- Pensions
- Foundations and endowments
- Corporations
- Governments
Goldman Sachs announced in December 2020 a 10-year climate transition and inclusive growth program worth $750 billion.
Frequently Asked Questions (FAQs).
What does a real estate investment company do?
While real estate investment companies work in a similar way to other companies, their sole focus is on real estate assets. The companies listed here have some of the most desirable real estate investment trusts. These REITs are essentially small real estate investment firms within a larger organization.
How is “high-net worth” defined by investment companies?
Each investment company will determine the definition, but high net-worth individuals generally have at least $1,000,000 in liquid assets. Companies will fight for these clients. High-net-worth individuals can greatly increase an investment company’s total assets under management.
