Asset Management Industry Profile

Companies in this industry manage the financial assets of corporate, institutional, and individual clients. Major companies include BlackRock, Fidelity Investments, State Street Corporation, and Vanguard (all based in the US), as well as Allianz Group (Germany), Amundi (France), and UBS Group (Switzerland). In addition, most major banks have asset management divisions.

Worldwide, companies in the industry had about $79 trillion of assets under management as of 2017, according to Boston Consulting Group (BCG). The US and Canada together accounted for nearly half of that total. Other leading countries for the industry include the UK, Germany, the Netherlands, Australia, South Korea, and Japan.

The US asset management industry includes about 57,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $325 billion. The industry includes hedge funds, financial advisers, mutual funds, and venture capital firms, all of which are covered in separate industry profiles. Investment banks and securities brokerages, which are not included in the industry, also are covered in separate profiles.

COMPETITIVE LANDSCAPE

Demand is driven by demographic and market trends such as the growing population of retirees and the accumulation of wealth and investable assets, as well as returns on investments. The profitability of individual companies depends on the volume and performance of the assets they manage. Large companies have advantages in providing expertise in a wide range of investment options. Small companies can compete by focusing ...