An asset management company invests and manages portfolios of mutual funds and other securities. Some are geared toward very wealthy individuals, in that these investors usually hand over full control of their portfolios to managers, who handle their assets. In this article, learn about some of the largest investment management firms in the world, plus what you need to know about how they work.
How Do Big Asset Management Firms Work?
Many asset managers will only deal with large institutions. These might be other corporations, big nonprofit organizations, or associations. But many of the most recognizable firms will offer services for average investors. In many cases, asset management firms make money by charging fees based on the value of assets they manage. Others will charge flat fees. In some cases, asset management makes up only a fraction of the company’s revenue, and they often partner with each other in various ways, even though they are also competitors. For example, one asset management firm may use its online platform to allow investors to buy and sell the mutual funds of a competing company.
10 Largest Investment Management Companies
Here’s a look at the top asset management companies. These rankings are based on the number of funds (assets under management or AUM) under their control, based on their most recently reported balance sheets as of February 2022. You may recognize some of these companies, as they are some of the largest financial institutions in the world.
1. BlackRock
AUM: $9.464 trillion BlackRock is not just the world’s largest asset manager, but one of the world’s largest financial institutions. The company was founded in 1988 and went public in 1999. The firm has been influential in advancing the growth of exchange-traded funds (ETFs) through its iShares products. iShares comprised more than a quarter of BlackRock’s assets under management in 2021.
2. The Vanguard Group
AUM: $8.4 trillion Vanguard is known for its strategy of passive investing. This means that money is placed in mutual funds designed to mirror the activity of a specific index or the broader stock market. Vanguard boasts of low expense ratios for most of its funds. Along with asset management, Vanguard offers brokerage services, financial planning, annuities, and other services.
3. UBS Group
AUM: $4.432 trillion UBS Group has four divisions that operate around the world. The Switzerland-based firm describes itself as the “only truly global wealth manager.” UBS offers both wealth management and asset management services.
4. Fidelity
AUM: $4.23 trillion Fidelity is an asset manager and a discount broker with more than 30 million customers as of 2021 third quarter. It offers an online platform for individual investors to buy and sell securities. Fidelity also manages entire portfolios on behalf of clients. In the summer of 2018, it made headlines when it began offering mutual funds with a zero expense ratio and minimum investment requirement.
5. State Street Global Advisors
AUM: $3.86 trillion Boston-based State Street is a subsidiary of State Street Corporation. It manages investments for a wide range of institutional clients, including non-profits, local governments, associations, and even educational groups.
6. Morgan Stanley
AUM: $3.274 trillion Partners and staffers from the J.P. Morgan and Drexel companies formed Morgan Stanley on Wall Street in 1935. When it acquired the investment platform E*TRADE in late 2020, Morgan Stanley had about 68,000 employees in 39 countries.
7. JPMorgan Chase
AUM: $2.996 trillion Most people think of JPMorgan Chase as an investment bank, but it also has a robust asset management business. In 2017, it had $1.3 trillion in assets moved from BlackRock as part of a new custody arrangement.
8. Allianz
AUM: $2.953 trillion This German firm is primarily an insurer. It also operates two asset management divisions: Allianz Global Investors and PIMCO. Together, Global Investors and PIMCO manage about $2.17 trillion of third-party assets as of October 2021.
9. Capital Group
AUM: $2.6 trillion Capital Group was founded in 1931 in Los Angeles. It employed over 7,800 associates in 29 offices worldwide as of February 2022.
10. Goldman Sachs
AUM: $2.372 trillion Asset management is just one of many services offered by Goldman Sachs. The types of clients it serves include:
Hedge fundsBanks and brokeragesPensionsEndowments and foundationsCorporationsGovernments
In December 2020, Goldman Sachs announced a 10-year $750 billion climate transition and inclusive growth initiative.