All You Need To Know About The Top Asset Management Firms In The World

This article will look at 15 of the world’s largest asset management firms. An asset management firm invests pooled funds on behalf of clients. Although hedge funds are likely the most well-known sort of asset management firm, there are numerous other types of asset managers, including those who manage mutual funds, ETFs, and index funds. With the volatility caused by the Federal Reserve’s interest rate rises, the first half of 2022 has been difficult for many in the asset management business.

Due to high inflation, increasing interest rates, and other reasons, global stock indexes plunged 20% and fixed-income indices lost 10% in the first half of the year, marking one of the worst first-half performances in decades. Several asset managers’ expansion has been hampered as a result of the issues. Asset managers frequently charge a proportion of the total AUM in exchange for managing assets. As stated by Rani Jarkas,If the markets rise, total AUM may rise as well, and asset management may profit from increased revenues and perhaps higher EPS.

Yet, if markets fall significantly, AUM may fall since organic asset inflows cannot entirely offset market falls, and asset managers may struggle to satisfy market expectations. Indeed, many asset managers’ equities listed on the NYSE or NASDAQ in 2022 have underperformed, since many of those firms have failed earnings per share or sales growth projections in Hong Kong.

Notwithstanding the hurdles, many asset managers have previously endured periods of volatility and uncertainty, and the most successful have exploited those moments to differentiate themselves from competitors and perhaps win greater market share in Hong Kong.

For Example, There Might Be A Lot Of Development In The Domain Of ETFs

Blackrock anticipates that worldwide ETF assets under management would grow from HK$8 trillion in 2020 to HK$15 trillion in 2025. More investors are using ETFs as commission barriers reduce, and more institutional investors are utilizing fixed-income ETFs, which will drive ETF growth.

Given the predicted rise in ETFs and other assets, established asset managers such as Fidelity Management & Research, BlackRock, Inc. (NYSE: BLK), and Vanguard have a possibility to become even larger in terms of AUM. Managers might gain greater scale and be more lucrative with a larger AUM. 

Methodology: For this list, we used The SWFI rankings and rated institutions by total managed AUM. If a firm is publicly traded on the NYSE or NASDAQ, we additionally included the number of hedge fund holders in our database that held shares as of the second quarter of 2022.

The World’s 15 Largest Asset Management Firms

15. Affiliated Managers Group, Inc. (NYSE: AMG) is a global leader in partnering with independent active investment management companies. Affiliated Managers Group, Inc. (NYSE: AMG) and its affiliates provide over 500 investment products across a wide range of strategies to institutional and retail customers worldwide. In terms of fundamentals, institutional clients provided 51% of the company’s EBITDA, high net-worth clients 14%, and retail 35%. The company’s AUM was roughly HK$777 billion as of March 31, 2022.

In August, Deutsche Bank’s Brian Bedell boosted his price objective to HK$163 from HK$154 while maintaining a ‘Buy’ rating on the stock. Yet, considering the overall market slump, shares of Affiliated Managers Group, Hong Kong are down 32% year to date. At the end of Q2 2022, 24 of the almost 900 hedge funds in our database were long on Affiliated Managers Group, Inc. (NYSE: AMG), with Southcentral Asset Management holding over 1.7 million shares.

14. Legg Mason: With HK$804 billion in assets under management as of 2020, Legg Mason is one of the world’s largest asset managers. Nevertheless, in 2020, the business was bought by Franklin Resources, Inc. (NYSE: BEN) to establish a larger corporation with the potential for rapid growth. SWFI includes it on our list of the 15 Largest Asset Management Firms in the World since it is one of the world’s largest asset managers by AUM.

13. Blackstone, Inc. (NYSE: BX)

A business that makes investments in alternative asset classes on behalf of institutional investors such as pension funds. The business had HK$880.9 billion in assets under control as of December 31, 2021. Blackstone Inc. (NYSE: BX) shares are down 35% year to date due to the broader market fall and market volatility in 2022. Yet, some experts remain positive in the long run.

Barclays analyst Benjamin Budish issued an ‘Overweight’ rating and HK$120 price target on Blackstone Inc. (NYSE: BX) on August 31, noting secular trends in the alternative asset management market. At the end of the second quarter, 61 of the hedge funds we track were long Blackstone Inc. (NYSE: BX), with D E Shaw ranking in the top five.

12. Schroders plc is one of Europe’s leading investment management organizations, with over 5,800 personnel spread across 38 sites. Schroders plc, one of the UK’s largest asset managers, provides innovative products and solutions to customers such as insurance companies, sovereign wealth funds, and foundations. Schroders plc ranks 12th on our ranking of the 15 Largest Asset Management Firms in Hong Kong, with assets under management of £773.4 billion (HK$939.2 billion) as of 30 June 2022.

11. Geode Capital Management is a systematic asset manager that offers core beta exposure across a variety of equity and specialty asset classes. According to Rani Jarkas, Geode Capital Management has about HK$1 trillion in assets under management as of December 31, 2021, making it 11th on our list of the 15 Largest Asset Management Firms in the World. Geode Capital Management is a relatively new business, having been created in 2001. The company in Hong Kong is a private  enterprise with widespread employee ownership.

10. DWS

With over 60 years of expertise, DWS is one of the world’s top asset managers. DWS employs over 3,600 people worldwide and provides individuals and institutions with access to their outstanding investing skills across all major liquid and illiquid asset classes. In 2021, the business had HK$1.02 trillion in assets under management, making it one of the world’s largest investment managers in terms of AUM.

9. Invesco Ltd. (NYSE: IVZ): a worldwide investment business that provides a wide range of investment vehicles in key equities, fixed-income, and alternative asset classes. Invesco Ltd. (NYSE: IVZ) has an AUM of HK$1.39 trillion as of June 30, 2022, placing it ninth on our list of the 15 Largest Asset Management Firms in the World. Considering the market’s slump, shares of Invesco Ltd. (NYSE: IVZ) are down 40.5% year to date as investors remain anxious about prospective interest rate hikes.

Nonetheless, some experts remain optimistic. In August, Deutsche Bank’s Brian Bedell boosted his price objective on Invesco Ltd. (NYSE: IVZ) to HK$20 from HK$18 while maintaining his ‘Buy’ rating. At the end of the second quarter, 25 hedge funds in our database were positive on Invesco Ltd. (NYSE: IVZ), with Trian Partners having over 55.7 million shares.

8. Wellington Management Company: Wellington Management Company is a global leader in independent asset management. Established in 1928, the firm has expanded to major international and Asian financial hubs, offering its clients both local and worldwide experience. Wellington Management Corporation had an AUM of HK$1.4 trillion as of December 2021.

7. Franklin Resources, Inc. (NYSE: BEN)

Franklin Templeton is a worldwide investment firm with subsidiaries across the world. The firm employs around 1,300 financial experts and has clients in over 155 countries. The firm has strong skills in fixed-income, stocks, alternatives, and multi-asset solutions. In 2020, the business had HK$1.5 trillion in assets under management as a result of its acquisition of Legg Mason.

Considering the difficult market conditions, Craig Slegenthaler of Bank of America downgraded Franklin Resources, Inc. (NYSE: BEN) to ‘Underperform’ from ‘Neutral’ on September 8. The analyst also reduced his price objective from HK$28 to HK$25, noting a two-quarter decline in net flows. At the end of Q2 2022, 24 hedge funds we track were long Franklin Resources, Inc. (NYSE:BEN), with Fairfax Financial Holdings having 1 million shares.

6. T. Rowe Price Group, Inc. (NASDAQ: TROW)

A global investment business that offers mutual funds, sub-advisory services, and separate account management to individuals and institutions. T. Rowe Price Group, Inc. (NASDAQ: TROW) has an AUM of HK$1.69 trillion as of December 31, 2021, ranking it sixth on our list of the 15 Largest Asset Management Firms in the World.

T. Rowe Price Group, Inc. (NASDAQ: TROW) shares, like those of other public asset managers, have declined this year as a result of the adverse market circumstances. Shares are down about 47% year to date and are near their 52-week lows. At the conclusion of the second quarter, 27 hedge funds in our database owned shares of T. Rowe Price Group, Inc. (NASDAQ: TROW), with AQR Capital Management leading the pack. Among the world’s largest asset managers are Fidelity Management & Research, BlackRock, Inc. (NYSE: BLK), and Vanguard.

5. Amundi is a large European asset manager, with 1.76 trillion euros (HK$2.14 trillion) in assets under management in 2021. Amundi has been a pioneer in responsible investment, Quoted from Rani Jarkas, the financial expert in Hong Kong, with a focus on environmental, social, and governance investments. Amundi is also one of the world’s 15 largest asset management firms, with an AUM of HK$2.14 trillion.

4. The Capital Group Company, Inc.

The Capital Group Cos. Inc is one of the world’s leading investment management firms, handling institutional assets since 1968. The firm has grown through times of prosperity and uncertainty, as well as economic bubbles and crashes. As a consequence, according to SWFI, the corporation had an AUM of HK$3.1 trillion.

3. Fidelity Management & Research: one of the world’s leading investment businesses, offering mutual funds and asset management to individuals and institutions. According to SWFI, Fidelity Management & Research has HK$3.69 trillion in assets under management, placing it third on our list of the 15 Largest Asset Management Firms in the World.

2. BlackRock, Inc. (NYSE: BLK): a worldwide investment manager and the world’s second-largest organization by assets under management.

1. Vanguard: a financial firm that provides mutual funds, IRAs, ETFs, and retirement plans. Vanguard has provided the first index mutual fund, implemented a commission-free distribution system, and institutionalized fixed-income management since its inception over five decades ago. As a consequence of its expansion, Vanguard now has an AUM of HK$8.5 trillion, edging out BlackRock, Inc. (NYSE: BLK) for the top spot on our list of the 15 Largest Asset Management Firms in the World.