The external asset management industry is booming, with assets under management (AUM) expected to reach $100 trillion by 2025. This growth is being driven by a number of factors, including:
There are a number of benefits to using an external asset manager, including:
When choosing an external asset manager, it is important to consider a number of factors, including:
There are 4 main types of external asset managers:
When interviewing external asset managers, it is important to ask a number of questions, including:
The future of external asset management is bright. As the investment markets continue to grow in complexity, the demand for professional investment management will only increase. External asset managers are well-positioned to meet this demand and help investors achieve their financial goals.
Rank | Asset Manager | AUM (USD) |
---|---|---|
1 | BlackRock | $9.5 trillion |
2 | Vanguard | $7.2 trillion |
3 | State Street Global Advisors | $4.3 trillion |
4 | Fidelity Investments | $3.9 trillion |
5 | PIMCO | $2.2 trillion |
6 | T. Rowe Price | $1.5 trillion |
7 | American Funds | $1.4 trillion |
8 | JP Morgan Asset Management | $1.3 trillion |
9 | Goldman Sachs Asset Management | $1.2 trillion |
10 | UBS Asset Management | $1.1 trillion |
Fee Type | Average Fee |
---|---|
Management Fee | 1-2% of AUM |
Performance Fee | 20% of investment gains |
Transaction Fee | $0.01-$0.05 per trade |
Asset Manager | 1-Year Return | 5-Year Return | 10-Year Return |
---|---|---|---|
BlackRock | 10.0% | 12.0% | 15.0% |
Vanguard | 9.5% | 11.5% | 14.5% |
State Street Global Advisors | 9.0% | 11.0% | 14.0% |
Fidelity Investments | 8.5% | 10.5% | 13.5% |
PIMCO | 8.0% | 10.0% | 13.0% |
Service | Description |
---|---|
Investment Management | Making investment decisions on your behalf |
Financial Planning | Helping you develop a financial plan |
Tax Planning | Helping you minimize your taxes |
Estate Planning | Helping you plan for the distribution of your assets |
Custody | Safekeeping your assets |
External asset managers can provide a number of benefits to investors, including access to expertise, time savings, cost savings, and peace of mind. When choosing an external asset manager, it is important to consider a number of factors, including investment philosophy, fees, performance, reputation, and service. The future of external asset management is bright, as the demand for professional investment management continues to grow.
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