Asset Management

Asset Management

Brief Excerpt from Industry Overview Chapter:

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 Group (all based in the US), as well as Allianz Group (Germany), Amundi (France), and UBS (Switzerland). In addition, most major banks have asset management divisions.

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 on a single product or type of client. The US industry is fragmented: the 50 largest companies account for less than 50% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services include personal financial planning and investment management services (about 50%) and financial management consulting and implementation services (about 35%). Other services include trading securities and commodity contracts and trust services. Firms use diverse business models and manage a variety of assets, including mutual funds, exchange traded funds (ETFs), pension funds, hedge funds and venture capital funds.