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If you are looking to build wealth but do not have the time or means to follow global markets on your own, hiring an asset management company would be a smart route to take. 

Read on to learn more about what an asset manager is and what service they can provide for your financial needs.

What is asset management?

Asset management, also known as AMC, is the practice of expanding a financial portfolio and increasing overall wealth by acquiring, tracking, maintaining, and trading investments that have the potential to grow in value over time on behalf of others.

An asset management professional aims to mitigate risk on a client’s behalf while also aiming to maximize their financial health by handling their investment portfolio.

Asset management is a service provided by a financial institution catering specifically to high-net-worth individuals, government entities, and corporations. Asset managers make financial decisions on account of the client in hopes of creating more wealth opportunities. 

Top asset management companies: 



Learn MoreOn BlackRock’s Website

BlackRock is one of the leading investment solutions institutions around the globe and the number one asset manager with $10 trillion in assets as of January 2022. BlackRock is based in New York City and was founded in 1988.

They help millions of people worldwide invest in building savings and retirement funds. They use iShares as their investment strategy and host their funds, such as exchange-traded funds (ETFs) and mutual funds, which offer diversified and low-cost ways to tap into the potential of the markets. 

They also manage equity, fixed income, and balanced portfolios. Along with ETFs, CEFs, and mutual funds, they also manage offshore funds, unit trusts, alternative investment vehicles, currency, commodity, and hedge funds.

Committed to progression, BlackRock keeps its eyes on sustainability, meaning that they are fond of starting to transition its clients and the world to a net zero economy. They believe that net zero is important because climate risk affects financial risks, which reroutes capital. Net zero also provides huge investment opportunities that will help the world economy.

Due to its upward trend in stock value and its holistic approach to investing, BlackRock is a good choice for your asset management company.


Goldman Sachs Group Inc.

Learn MoreOn Goldman Sachs Group’s Website

Goldman Sachs Group Inc. is a global Investment Bank based in New York City. They provide financial advice and services, including asset management,  securities, investment management, prime brokerage, and more. 

In terms of asset management, Goldman Sachs’s perspective includes alternative return drivers, the pursuit of affordable, clean, and secure energy, premade plans for rising interest rates and private debt, realization of current real estate, and trends of new technologies. Due to this, Goldman Sachs continuously ranks at the top of investment banks and is most trusted among big corporations.

With more than 150 years of experience working with the world’s largest businesses, entrepreneurs of all sizes, and institutions, Goldman Sachs commits to client service, achieving exceptional performance for clients, shareholders, and companies, integrity, and cultivating meaningful partnerships.

If you are looking for a reliable and trustworthy asset management company that can withstand time, Goldman Sachs Group Inc may be your choice.


The Vanguard Group

Learn MoreOn Vanguard’s Website

The Vanguard Group is ranked the second largest AMC in the world and is valued at $7.5 trillion. With its base in Malvern, PA, and 18,800 employees globally, Vanguard is no newbie to the financial industry. It was founded in 1975 and had 30 million+ investors in more than 160 countries.

They offer low-cost mutual funds, exchange-traded funds (ETFs), brokerage and trust services, asset and wealth management, variable and fixed annuities, financial planning and educational resources.

Valuing ownership, Vanguard believes in an investor-owned business model that considers its investors part owners of the company and encourages aligned interests between the two. As asset managers, they claim to value their client’s financial interests and long-term goals.

Considering their longevity and track record, the Vanguard Group is a great option for assessment management.


UBS Group

Learn MoreOn UBS’ Website

The Zurich-based UBS Group asset management service claims to differ from its counterparts in the industry. They are smaller than Goldman Sachs and the Vanguard Group, with 23 markets around the world, 3,600 employees worldwide, and 880 investment professionals.

Without pushing one strict investment strategy, UBS believes in independent thinking. They encourage different investment approaches and styles to promote innovation, all while keeping scaling in mind. 

They are among one of the fastest growing asset management companies on the market right now, with investment areas in equities, fixed income, multi-asset, currency, hedge funds, private markets, real estate, and sustainable investing. They also provide UBS funds and UBS ETFs.

UBS has been awarded for its innovative technology features and accessible educational resources. They share their research and findings on their website and are updated rather frequently. If you are someone who wants to be in the know constantly, UBS keeps their account holders routinely informed.

UBS Group may be the best choice for you and your investment needs if you are looking for a specialized partnership with your asset management company.


Fidelity Investments 

Learn MoreOn Fidelity’s Website

Fidelity Investments is a multinational financial services corporation based out of Boston. It is another one of the largest asset managers in the world, with $6.7 trillion in assets under management and total customer asset value combined, 36,000 employees across nine other countries.

Fidelity has a rough total of discretionary assets of about $4,283.3 billion, including equity, high income, hybrid, investment grade bonds, and money market assets. Their investment capabilities include alternative investments, absolute returns, commodities, and real estate.

Fidelity Investments can be a great choice for new and seasoned investors if you are looking for a large asset management company with a positive track record.

What do asset management companies do?

Ultimately, asset management has two main goals: increasing a client’s financial portfolio while mitigating risk at the same time. With that in mind, one of the most important questions asset managers take into consideration is how much risk the client is willing to take.

Risk looks different for every investor. For example, a retiree living on the income of their financial portfolio will be more disinclined to risks. At the same time, a younger individual would be more inclined to make higher-risk investments. Most people are somewhere in the middle. Asset managers consider that for each of their clients.

Based on risk tolerance, asset managers will determine which investments can be made or avoided, all while keeping the client’s goals in mind. Management professionals will invest in stocks, bonds, mutual funds, real estate, and others.

Asset managers are also expected to conduct extensive research and use various financial tools to determine the best investments. This includes statistical analysis of market trends, review of important financial documents, and anything else that will contribute to the client’s overall financial progress and asset appreciation.

How do asset management companies (AMC) work?

AMCs are hired to oversee investments made and maintained for high-net-worth clients, including individuals and corporations. Accounts are opened at financial institutions that offer check-writing capabilities, credit cards, debit cards, margin loans, and brokerage services.

Clients must deposit funds into their accounts which are usually money market accounts because they offer higher returns than a regular savings account. 

The two types of accounts that they can choose from are either Federal Deposit Insurance Company, also known as FDIC insured, or non-FDIC insured accounts. This means that the FDIC will ensure reimbursement of up to $250,000 back to the client in certain unforeseeable events. 

The bottom line

As many financial institutions provide a plethora of services and products, it is important to gain clarity on your financial goals and do your research before choosing the best company to handle your money.

As a big business owner, entrepreneur, or salaried worker who wants to invest but does not have the means or time to do it on your own, hiring an investment management company to make the right decisions for you would be a great place to start building wealth.

Are you interested in more information? Visit us today to get your business and financial goals started

Information provided on Entrepreneur Guide is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, we do not recommend or advise individuals to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results

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