The largest investment management company worldwide by assets under management (AUM) as of 2022 was Blackrock reaching almost 9.5 trillion U.S. dollars in AUM. The Vanguard Group ranked second managing 8.4 trillion U.S. dollars in assets. These two firms held their positions with a strong lead with UBS Group ranking third managing roughly four trillion U.S. dollars less than The Vanguard Group in assets.
The Vanguard Group provides a narrow selection of services, with its primary focus on financial planning activities and actively managing a range of Vanguard investment funds. Blackrock, in comparison, offers a broader range of services, having split the firm into three primary divisions, focusing on risk management, fund management, and online investment management.
The primary function of an investment management firm is to invest the funds of its clients. Investments are made based on factors such as risk, time frame, and purpose of the investment. For instance, when managing pension funds for retirement investing the time scale is longer and so there is a margin of risk that can be taken. However, this risk ratio decreases as the date of retirement approaches.
