Financial services is a multi-trillion-dollar industry. Large asset management companies pool money from individual investors, businesses, and non-profits to invest in different asset classes such as stocks and bonds. These companies have the expertise and resources that most individual investors don’t. They manage money on your behalf to deliver capital appreciation, create wealth, and preserve your money in exchange for a fee.
Here we take a look at the top 10 largest asset management companies in the world. The ranking is based on their asset under management (AUM). These financial services giants also offer other services like brokerage and management consulting, besides asset management.
10- Amundi Asset Management, $1.59 trillion
French asset management giant Amundi had EUR 1.425 trillion ($1.59 trillion) of assets under management at the end of 2018, making it one of the world’s largest asset management companies. It was formed in 2010 following the merger of the asset management businesses of Societe Generale and Credit Agricole. It has offices in 37 countries. It operates mutual funds, ETFs, real estate and private equity funds.
9- BNY Mellon, $1.7 trillion
The Bank of New York Mellon is one of the world’s oldest banks with its roots going back to 1784, when Alexander Hamilton founded the Bank of New York. Its asset management arm has $1.7 trillion of assets under management, according to the company’s regulatory filing. BNY Mellon was formed in 2007 following the merger of the Bank of New York with Mellon Financial.
8- Capital Group Companies, $1.86 trillion
Founded in 1931, Capital Group Companies had $1.86 trillion of total assets under management as of March 2019. It has more than three dozen mutual funds through its subsidiary American Funds. Capital Group Companies has a strong presence not only in the US but also in Asia, Europe, and South America. The company has also been praised for the diversity among its employees.
7- Allianz, $2.19 trillion
German insurance and asset management giant is the largest asset management company in Europe. According to the company’s regulatory filing, it had $2.19 trillion of assets under management at the end of 2018. Allianz’s asset management business consists of PIMCO, Allianz Global Investors, and Allianz Real Estate. Yes, PIMCO is a wholly-owned subsidiary of Allianz.
6- Fidelity Investments, $2.56 trillion
Led by billionaire Abigail Johnson, Fidelity Investments has $2.56 trillion in assets under management, making it one of the world’s largest asset management companies. Fidelity ContraFund and Fidelity 500 Index Premium are two of its most popular mutual funds. Fidelity also offers brokerage services. Last year, it started offering mutual funds with zero expense ratio.
5- JPMorgan Chase, $2.73 trillion
New York-based JPMorgan Chase is one of the world’s largest banks. It also offers a wide range of services such as asset management, investment banking, brokerage, credit cards, and treasury & security services. At the end of 2018, it had $2.73 trillion in assets under management. JPMorgan Chase was formed in 2000 following the merger of JPMorgan with Chase Manhattan.
4- State Street Global Advisors, $2.81 trillion
Boston-based State Street Global Advisors is a subsidiary of State Street Corporation. It had $2.81 trillion in AUM at the end of 2018. It manages money for local governments, associations, educational institutions, non-profits, and even religious organizations. The SSGA was founded in 1978. It offers asset management services in countries across the Americas, Europe, and Asia.
3- Charles Schwab, $3.52 trillion
Charles Schwab is a leading banking and brokerage services provider in the United States. It also provides asset management, margin lending, and other services. Charles Schwab has more than 11 million active brokerage accounts and $3.52 trillion of assets under management. Charles Schwab is known for bringing investing to the masses through low commissions and an electronic trading platform.
2- Vanguard, $5.2 trillion
Founded by legendary investor John Bogle, The Vanguard Group is credited with popularizing low-cost passive investing. Its funds mirror the asset allocation of an index or the broader stock market without the involvement of an active fund manager. That’s why its expense ratios are much lower than active funds. According to Vanguard, it had $5.2 trillion in total assets at the end of January 2019.
1- BlackRock, $6.5 trillion
New York-based BlackRock is by far the world’s largest asset management company with AUM of $6.5 trillion as of April 2019, according to the company’s regulatory filing. Founded in 1988, BlackRock is often referred to as the world’s largest shadow bank due to its mammoth size and power. BlackRock’s iShares funds are incredibly popular among individual investors as well as businesses. BlackRock funds focus on risk management, which is why they performed much better than others during the 2008 financial crisis.