Direct Answer
30 SEC filers are classified under the Standard Industrial Classification code that describes the asset & wealth management industry, and their latest annual reports show $138.5 billion of combined revenue and a median operating margin of 12.1%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Asset and wealth managers run investment portfolios and advise clients for fees based on assets, so revenue rises and falls with markets and net flows. Cost control and fee rates determine margins. The first numbers to compare across companies here are assets under management and net flows, average fee rate and operating margin.
Key Industry Metrics
- Assets under management and net flows: Total client assets managed and money added less withdrawn. It mixes market moves and flows, so net flows show real client demand.
- Average fee rate: Fees earned as a share of assets, in basis points. It tends to fall with competition and a shift to lower-cost products, so mix matters.
- Operating margin: Operating income as a share of revenue. It rises when markets lift assets faster than costs, and falls when fees are cut or pay rises.
- Share of active and passive products: Portion of assets in actively managed versus index-tracking products. Active funds carry higher fees, so a falling share can reduce revenue.
- Performance fees: Fees earned when investments beat a hurdle or benchmark. They are volatile and uncertain, and a high share makes earnings less predictable.
Primary Macro Drivers
- Market levels: Fees are a share of assets, so rising markets lift assets under management and revenue, and falling markets cut both.
- Client flows and performance: Flows follow investment returns and client preferences, so strong performance can attract assets and weak results lead to outflows, shown in net flows.
- Fee competition from passive funds: Cheap index funds and ETFs draw assets from higher-fee active funds, lowering the average fee rate and shifting product mix.
- Advisory and wealth growth: Advice and planning services produce steady fees and sticky clients, adding assets under management and net flows apart from fund sales.
Major Risks
- Market declines: Fee revenue is tied to asset values, so a market fall cuts revenue quickly while costs are slower to adjust. Watch assets under management and operating margin.
- Fee compression: Competition from low-cost products and platforms pulls down average fee rate. Watch average fee rate and the share of active and passive products.
- Outflows from active funds: Weak performance prompts clients to move to cheaper or better funds, lowering assets and fees. Watch net flows in active funds.
- Key manager departures: When star managers leave, clients and assets may follow. Watch net flows, performance and any disclosed key-person dependence.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | Low |
| Regulatory Intensity | Medium |
| Industry Maturity | Mature |
| Geographic Importance | U.S. / Global |
Asset & Wealth Management Filers in the SEC Record
30 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 6282. Their latest fiscal years end between 2025 and 2026, and together they reported $138.5 billion of revenue. Median revenue growth over the prior year was 7.0%. Median operating margin was 12.1% and median net margin 13.7%. Median total liabilities were 54% of total assets, and 24 of 30 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Apollo Global Management, Inc. | $32.0 billion | 22.7% | n/a | 10.6% | FY 2025 |
| Kkr & Co. Inc. | $19.5 billion | -11.0% | n/a | 12.2% | FY 2025 |
| Ameriprise Financial Inc | $18.9 billion | 5.5% | n/a | 18.8% | FY 2025 |
| Blackstone Inc. | $14.5 billion | 9.2% | n/a | 20.9% | FY 2025 |
| Franklin Templeton Inc | $8.8 billion | 3.5% | 6.9% | 6.0% | FY 2025 |
| Price T Rowe Group Inc | $7.3 billion | 3.1% | 29.9% | 28.5% | FY 2025 |
| Invesco Ltd. | $6.4 billion | 5.1% | -10.9% | -2.7% | FY 2025 |
| Carlyle Group Inc. | $4.8 billion | -11.9% | n/a | 16.9% | FY 2025 |
The 8 largest of 30 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Asset & Wealth Management guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Asset & Wealth Management industry?
Key performance indicators for the Asset & Wealth Management industry include: Assets under management and net flows, Average fee rate, Operating margin, Share of active and passive products, Performance fees. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Asset & Wealth Management industry?
The Asset & Wealth Management industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Asset & Wealth Management industry?
The primary risks for Asset & Wealth Management companies include: Market declines, Fee compression, Outflows from active funds, Key manager departures. Investors should assess each company's exposure to these factors and its track record of navigating them.