The asset management industry is undergoing some important shifts. The first big trend is the rise in popularity of passive investing and index funds. The second big trend is the rise of ESG investing. Both these shifts are expected to significantly impact the business models of all asset management companies. Some players have taken steps to position themselves more favorably to leverage these trends. Some companies have inherent qualities to tackle these changes. If you are looking to buy the best asset management stock market picks, then you would want to keep in mind the developments related to these structural trends. BlackRock, UBS, and Fidelity are among the giants of the asset management industry. They have a long track record in the industry and would be a good place to begin your research into the sector.
BlackRock – The Largest Asset Manager In The World
BlackRock is a giant in the asset management industry. As of December-end 2020, the company had assets under management of $8.68 trillion, by far the largest in the world. The assets under management grew 16.8% on a year-on-year basis. The company management attributed the strong performance to record inflows received by the firm during the recent quarters. Blackrock is the company that manages the well-followed iShares group of ETFs. BlackRock has managed to become so huge because of the variety of investment options that it offers. The company has something in asset classes like stocks, bonds, commodities, real estate, etc. BlackRock has a strong brand and a global presence to distribute its products and services. If you are looking to buy asset management stock, then BlackRock should be among the candidates.
BlackRock has experienced stellar growth in its assets under management. Its stock price has also appreciated reasonably. Over a 5-year period, the stock is up 142%. It was trading at a 1.93% dividend yield on 10th May 2021 with the price closing at $857.45.