Asset management firms help investors diversify portfolios and provide investors with options they may have been unaware existed. These types of asset management companies manage pension plans, mutual funds, and hedge funds.
Asset management companies generate income by charging fees to clients for specific services. In some cases, these services can range from enrolling new clients in mutual funds, to producing investment products, to operating a private equity fund. The top asset management firms advise clients on a range of available investments. These firms are the most profitable and have developed a renowned reputation for excellent service.
BlackRock
BlackRock is an asset management company in the United States and has retained the top spot for the third following year. It manages more assets than any other asset manager in the industry and a little under two-thirds of the firm’s assets under management are passive. BlackRock is held by iShares. This company has witnessed the strongest growth over a five-year period of any ranking firm. From 2007 to 2012, BlackRock’s assets grew by 180%.
Allianz
Currently, Allianz is the highest ranking European asset manager in the top ten annual rankings. This is a German asset manager that has ownership of California-based PIMCO. One fund, PIMCO Total Return, generates more than 10% of the firm’s overall assets.
Vanguard Group
Total assets for Vanguard Group are over $2 trillion. This impressive figure helped Vanguard bypass rival State Street to enter third place in the annual ranking. For the most part, Vanguard Group’s has assets that are primarily passive. Vanguard experienced a 62% growth increase between 2007 and 2012 making it one of the higher growth rates of any managers in the annual top ten ranking.
State Street Global Advisors
State Street Global total assets also equal over $2 trillion. This firm is currently amongst the highest ranking passive asset managers. Although State Street has lost the third place spot, the firm sits comfortably in fourth place. State Street is a powerful United States asset management company that did not appear in the top 20 fastest growing firms between 2007 and 2012. However, this firm remains profitable and widely held.
Fidelity Investments
Fidelity’s total assets are around $1.89 trillion. As of late, this United States firm has created a hefty foothold in the UK market. Fidelity Investments has a broad and well-diversified fund range. One of the firm’s largest funds, the Fidelity European Growth, is slightly less than $10 billion. This fund and the US High Yield have produced more assets than the firm’s money market fund.
