Many investors or organizations invest money in growing organizations with the help of asset management companies. These companies take control of the investments and make investment decisions. An asset management company invests and manages portfolios of mutual funds and other securities. These investors have a team of managers working under them who handle their assets and try to gain a profit. Here is a list of some of the largest investment management companies in the world. In this guide, you’ll learn about the leading asset management companies and how they work?
How Big Asset Management Firms Work?
Many asset managers deal with big institutions only. Regardless of the type of organization it is, the biggest investment management companies deal with only the biggest organizations.
The common investment management company will have a plethora of services for the average investor. In several cases, asset management companies make money only by charging fees based on the value of the asset they’re managing. Other companies have fixed one-time fees.
These companies have other business operations as well besides asset management. Sometimes, this includes brokerage services. In some cases, asset management is only a tiny fraction of the company’s overall revenue and these. Several investment firms help each other out even though they’re direct competitors.
10 Largest Investment Management Companies
We had to choose from several asset management companies, our rankings are based on the number of assets they control. Let’s dive into our list of best asset management companies.
1. BlackRock: AUM ($7.318 trillion)
BlackRock is definitely one of the world’s largest asset managers, but it’s more than that, it’s also the world’s largest financial institution. The company was founded in 1988 and became public in 1999.
The firm has2 been influential in boosting the growth of exchange-traded funds (ETFs) via its iShares products. iShares is now a quarter part of all of BlackRock’s managed assets.
2. The Vanguard Group: AUM ($6.1 trillion)
Vanguard Group is famous in the investment management industry for its unique strategy of passive investments. This means that most of the money is invested in mutual funds, which are designed to mirror the stock market or a particular index.
Vanguard boasts of low expense ratios for most of the funds, along with asset management. The Vanguard group doesn’t just offer asset management, they also offer brokerage services, financial planning, annuities, and other services.
3. UBS Group: AUM ($3.518 trillion)
UBS Group is another leading asset management company and they have four divisions that operate around the world.
The Switzerland-based firm has an interesting motto that states “only true global wealth manager”. USB offers both wealth management and asset management services.
4. Fidelity: AUM ($3.319 trillion)
Fidelity is an asset manager and a discount broker with more than 27 million customers. They have an online platform for individual investors to buy and sell their securities. Fidelity also offers the services of managing entire investment portfolios. The company made the headlines in 2018 when it started offering mutual funds with a zero expense ratio and minimum investment requirements.
5. State Street Global Advisors: AUM ($2.530 trillion)
Boston-based State Street is a subsidiary of State Street Corporation. It manages investments for a huge range of clientele, that includes NPOs, local governments, associations, and educational groups.
6. Allianz: AUM ($2.530 trillion)
Allianz ranks on number 6th on our list of largest investment management companies. This German firm offers the primary services of an insurer. It also operates two asset management divisions: Allianz Global Advisors and PIMCO.
PIMCO itself handles a total of $1.92 trillion in terms of asset management.
7. JPMorgan Chase: AUM ($2.511 trillion)
JPMorgan is much more than an investment bank, it’s a huge investment management company. In 2017, it had 1.3 billion in assets that moved from BlackRock as part of a new custody arrangement.
8. Goldman Sachs: AUM ($2.57 trillion)
Goldman Sachs is a giant and it has its hands in many cookie jars. They’re one of the leading investment management companies in the world. Their widespread clientele includes:
- Hedge funds
- Banks and brokerages
- Endowments and Foundations
9. Bank of New York Mellon: AUM ($1.961 trillion)
Bank of New York Mellon became a thing around the same time the United States became a country. 2 centuries later, BNY Mellon is one of the largest investment management companies with investments in over 35 countries.
10. PIMCO: AUM ($1.92 trillion)
PIMCO is managed under the same company as Allianz. Although, now PIMCO is acquired by a German company, and now it’s headquartered in California.
Investment Management Companies FAQs
What do Real Estate Investment Companies do?
There’s no major difference between real estate investment companies and ordinary investment companies that we’ve listed above. Fun fact, the companies we’ve listed here are also some of the best real estate investment companies in the world. These REITs essentially work for as small real estate investment companies within the bigger company.
How do Investment Management Companies Determine “High-Net-Worth Individuals”?
The definition of high-net-worth individuals differs company by company. But high-net-worth individuals are generally those with at least $1 million in liquid assets. High-net-worth individuals can significantly add to a company’s total asset management portfolio.