There are many big companies in the world that manage a ton of money.
When individuals and institutions invest money, they will seek for help of asset management companies that can control the investment and generate money for all parties involved with the assumption that the market is cooperating.
Asset management companies are involved in investing and managing the portfolio of mutual funds and other securities. In short, these firms take capital from individuals or institutions and put it to work for them. Some asset management companies are directed by wealthy individuals who are fully surrender their investments to portfolio managers.
Many asset managers will only deal with large institutions, such as large companies or associations. But many of the most known firms will offer services to the average investor. In many cases, asset management firms make money by charging fees based on the amount of assets they manage, although some will charge a flat fee.
These companies often have other business lines besides asset management. In some cases, asset management makes up a small portion of a company’s revenue. This means they are often paired with each other in various ways, even as competitors.
For example, an asset management firm can use an online broker platform to allow investors to buy and sell funds with competing companies.
9 Largest Investment Management Companies
The following are the list of the top asset management companies, with the amount of funds under their control. You may know some of these companies as one of the largest financial institutions in the world.
Please note that some companies may have higher reported “assets under care” that include money still managed by the customer itself.
All figures reflect the most recent AUM number and exchange rate in August 2018.
AUM: $ 6.3 trilion
BlackRock is not just the largest asset manager in the world, but one of the largest financial institutions in the world. The company was established in 1988 and started in 1999. The firm is influential in advancing the growth of exchange traded funds (ETFs), through iShares products. ishares represents a quarter of BlackRock’s shares
2) Kumpulan Vanguard
AUM: $ 5.1 trilion
Vanguard has become synonym with passive investment strategies, where money is placed in mutual funds designed to reflect the activity of a particular index or broader stock market. Vanguard has a low expense ratio for most of its funds. In addition to asset management, Vanguard offers broker service, financial planning, annuity, and other services.
3) Charles Schwab
AUM: $ 3.36 trilion
“Chuck” is a leading discount broker with nearly 11 million active broker accounts. The company has played an important role in making investments easier for ordinary people through online platforms and low commissions.
4) JPMorgan Chase
AUM: $ 2..78 trilion
Most people recognize J.P. Morgan Chase as an investment bank, but it has a strong asset management business and received $ 1.3 billion in assets transferred from BlackRock as part of a new custody arrangement last year.
5) State Street Global Advisors
AUM: $ 2.7 trilion
Boston-based State Street is a subsidiary of State Street Corporation. It manages investments for a variety of clients including non-profits institutions, local governments, associations, and even educational groups.
AUM: $ 2.5 trilion
Fidelity is an asset manager and a discount broker with over 27 million clients. It offers online platform for individual investors to buy and sell securities, as well as manage the entire portfolio on behalf of clients. In the summer of 2018, they became a headline when the company started offering funds along with zero expense ratios and minimum investment requirements.
AUM: $ 2.2 trilion
The German company is an insurer but operates two asset management divisions: Allianz Global Advisors and PIMCO. By itself, PIMCO has over $ 1.6 trillion under management.
8) BNY Mellon
AUM: $ 1.8 trilion
BNY Mellon is an American multinational holding company for investment banking services with its headquarters in New York City. From the merger of The Bank of New York and the Mellon Financial Corporation, BNY Mellon was formed. It is by far the largest custodian bank and asset service company in the world with assets under management of $1.9 trillion and assets under custody of $37.2 trillion in the second quarter of 2020.
AUM: $ 1.6 trilion
The Paris-based company got a big boost in 2016 when it bought Pioneers Investment from an Italian bank. It has more than 100 million customers and offices in nearly 40 countries and is the top asset manager in Europe.