In this article, we will take a look at 15 of the biggest asset management companies in the world. If you want to see some more of the world's biggest asset managers, go directly to 5 Biggest Asset Management Companies in the World.
An asset management company invests pooled funds for clients. Although hedge funds are perhaps the most famous type of asset management company, there are many different types of asset managers including those that manage mutual funds, ETFs and index funds.
Given the volatility due to the Federal Reserve's interest rate increases, the first half of 2022 has been challenging for many in the asset management industry. With high inflation, rising interest rates, and other factors, global equity indexes fell 20% and fixed income indexes fell 10% in the first half of the year, marking one of the worst performances for a first half in recent decades.
Amid the challenges, the growth of many asset managers have also experienced challenges. In return for managing assets, asset managers often charge a fee in terms of the percentage of the total AUM. If markets go up, total AUM can go up, and the asset manager could benefit from higher revenues and potentially higher EPS.
If markets go down substantially, however, AUM could also go down as the organic asset inflows can't fully offset the market declines and asset managers could have a difficult time meeting market expectations. Indeed, the stocks of many asset managers listed in the NYSE or NASDAQ in 2022 have not done as well as many of those companies have missed earnings per share or revenue growth expectations.
Despite the challenges, however, many asset managers have experienced periods of volatility and uncertainty before, and the strongest have used those periods to differentiate themselves from competitors and ultimately potentially gain more market share.
Despite the volatility in 2022, some asset classes are expected to grow in the long term.
In terms of ETFs, for example, there could be a lot of growth in the area. In particular, Blackrock expects global ETF assets under management to increase from $8 trillion in 2020 to $15 trillion in 2025. The expected growth in ETFs is due to more investors adopting ETFs as commission barriers decrease and as more institutional investors are also using fixed income ETFs.
With the expected growth in ETFs as well as expected growth in other assets, there is an opportunity for the existing asset managers such as Fidelity Management & Research, BlackRock, Inc. (NYSE:BLK), and Vanguard to grow even bigger in terms of AUM. With bigger AUM, the managers could realize more scale and be more profitable.
For this list, we used the rankings of The SWFI and ranked institutions by the total managed AUM. If a company is publicly listed on either the NYSE or NASDAQ, we also included the number of hedge fund holders in our database that also held shares as of Q2 2022.
15 Biggest Asset Management Companies in the World
15. Affiliated Managers Group, Inc. (NYSE:AMG)
AUM: $777 billion
Affiliated Managers Group, Inc. (NYSE:AMG) is a leading partner to independent active investment management firms around the world. Affiliated Managers Group, Inc. (NYSE:AMG)'s affiliates offer more than 500 investment products across a variety of strategies to institutional and retail clients around the world. In terms of its fundamentals, institutional clients accounted for 51% of the company's EBITDA, high net worth clients contributed 14%, and retail contributed 35%. As of March 31, 2022, the company's AUM was approximately $777 billion.
In August, Brian Bedell of Deutsche Bank raised his price target to $163 from $154 and kept a 'Buy' rating on shares.
Nevertheless, given the decline in the broader markets, shares of Affiliated Managers Group, Inc. (NYSE:AMG) are down 32% year to date.
Among the almost 900 hedge funds in our database, 24 were long on Affiliated Managers Group, Inc. (NYSE:AMG) at the end of Q2 2022 with Southeastern Asset Management as the top hedge fund holder with over 1.7 million shares.
14. Legg Mason
AUM: $804 billion
With assets under management of $804 billion as of 2020, Legg Mason is one of the largest asset managers in the world. In 2020, however, the company was acquired by Franklin Resources, Inc. (NYSE:BEN) to form a larger firm that could potentially grow faster. Because SWFI includes it as one of the world's largest asset managers by AUM, it is also on our list of 15 Biggest Asset Management Companies in the World.
13. Blackstone Inc. (NYSE:BX)
AUM: $880.9 billion
Blackstone Inc. (NYSE:BX) is an investment firm that invests across alternative asset classes on behalf of institutional investors such as pension funds. As of December 31, 2021, the company had $880.9 billion in assets under management.
Due to the broader market decline and the market volatility in 2022, Blackstone Inc. (NYSE:BX) shares are down 35% year to date. Nevertheless, some analysts are still bullish long term.
On August 31, Benjamin Budish of Barclays initiated an 'Overweight' rating and $120 price target on Blackstone Inc. (NYSE:BX), citing secular trends in the alternative asset management space.
61 hedge funds we track were long Blackstone Inc. (NYSE:BX) at the end of the second quarter with D E Shaw among the top five.
12. Schroders plc
AUM: $939.2 billion
Schroders plc is one of Europe's largest investment management firms with employees of more than 5,800 people across 38 locations. As one of the UK's leading asset managers, Schroders plc offers innovative products and solutions to clients including insurance companies, sovereign wealth funds, and foundations. With assets under management of £773.4 billion or $939.2 billion as of 30 June 2022, Schroders plc is also 12th on our list of 15 Biggest Asset Management Companies in the World.
11. Geode Capital Management
AUM: $1 trillion
Geode Capital Management is a systematic asset manager that provides core beta exposures across a range of equity and niche asset classes. As of December 31, 2021, Geode Capital Management had assets under management of around $1 trillion, ranking it 11th on our list of 15 Biggest Asset Management Companies in the World. Compared to other firms, Geode Capital Management is relatively new given it was founded in 2001. The company is a private firm but also with broad employee ownership.
AUM: $1.02 trillion
DWS is one of the world's leading asset managers with more than 60 years of experience. DWS has around 3,600 employees around the world and offers individuals and institutions access to their strong investment capabilities across all major liquid and illiquid asset classes. In 2021, the company had assets under management of $1.02 trillion, ranking it as one of the world's largest investment managers by AUM.
9. Invesco Ltd. (NYSE:IVZ)
AUM: $1.39 trillion
Invesco Ltd. (NYSE:IVZ) is a global investment firm that offers a diverse set of investment vehicles across major equity, fixed-income and alternative asset classes. As of June 30, 2022, Invesco Ltd. (NYSE:IVZ) had an AUM of $1.39 trillion, ranking it 9th on our list of 15 Biggest Asset Management Companies in the World.
Given the decline in the broader market, shares of Invesco Ltd. (NYSE:IVZ) are down 40.5% year to date as the market remains concerned about potential interest rate increases.
Some analysts are bullish, however. In August, Brian Bedell of Deutsche Bank raised his price target on Invesco Ltd. (NYSE:IVZ) to $20 from $18 and kept his 'Buy' rating.
25 hedge funds in our database had a bullish position in Invesco Ltd. (NYSE:IVZ) at the end of the second quarter with Trian Partners owning over 55.7 million shares.
8. Wellington Management Company
AUM: $1.4 trillion
Wellington Management Company is one of the leading independent asset managers in the world. Founded in 1928, the company has expanded to main international and Asian financial centers and provides its clients with both local knowledge and global expertise. As of December 2021, Wellington Management Company had AUM of $1.4 trillion.
7. Franklin Resources, Inc. (NYSE:BEN)
AUM: $1.5 trillion
Franklin Resources, Inc. (NYSE:BEN) is a global investment organization with subsidiaries operating as Franklin Templeton. The company has approximately 1,300 investment professionals and serves clients in more than 155 countries. The company offers extensive capabilities in fixed income, equities as well as alternatives and multi-assets solutions. Due to its acquisition of Legg Mason, the company had assets under management of $1.5 trillion in 2020.
Given the challenging market conditions, Craig Slegenthaler of Bank of America downgraded Franklin Resources, Inc. (NYSE:BEN) on September 8 to 'Underperform' from 'Neutral'. The analyst also lowed his price target to $25 from $28, citing that net flows have deteriorated for two straight quarters.
24 hedge funds we track were long Franklin Resources, Inc. (NYSE:BEN) at the end of Q2 2022 with Fairfax Financial Holdings holding 1 million shares.
6. T. Rowe Price Group, Inc. (NASDAQ:TROW)
AUM: $1.69 trillion
T. Rowe Price Group, Inc. (NASDAQ:TROW) is a global investment firm that provides a broad array of mutual funds, subadvisory services, and separate account management for individuals and institutional investors. As of December 31, 2021, T. Rowe Price Group, Inc. (NASDAQ:TROW) had an AUM of $1.69 trillion, which ranks it 6th on our list of 15 Biggest Asset Management Companies in the World.
Like other public asset managers, T. Rowe Price Group, Inc. (NASDAQ:TROW) shares have fallen this year due to the challenging market conditions. Year to date, shares are down almost 47% and are near their 52 week lows.
27 hedge funds in our database owned shares of T. Rowe Price Group, Inc. (NASDAQ:TROW) at the end of the second quarter with AQR Capital Management among the leaders.
Companies like Fidelity Management & Research, BlackRock, Inc. (NYSE:BLK), and Vanguard are also among the world's biggest asset managers.
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Disclosure: None. 15 Biggest Asset Management Companies in the World is originally published on Insider Monkey.