The famous Wall Street Journal publishes a list titled “The Top 40 Wealth Management Firms” every year. If you are on the lookout for an RIA (Registered Investment Advisor) then look no further beyond the list published by the Wall Street Journal. The ranks allotted to the leading global financial management firms is on the basis of the AUM (Assets Under Management). The AUM indicates the assets of the US high-net-worth private clients that are under the management of the firms. The firms that found a position in the list boast of AUM of more than $5 million. Read on to find out more about the pertinent details of the most prominent financial management firms in the world.
1. Bank of America
The Global Wealth & Investment Management division of the Bank Of America ranks the highest in this list with $1.35 trillion in the treasury. One of the reasons behind the first rank of Bank of America is the acquisition of Merrill Lynch during the financial crisis of 2008. Merrill Lynch got sold to the BOA for $50 billion in the year 2008.
2. Morgan Stanley
The Wealth Management department of Morgan Stanley is in the second position with $1.2 trillion in the AUM. At the company, there are over 15,600 wealth managers at almost 600 branches of the bank.
3. J.P. Morgan
The third-largest firm of wealth management is J.P. Morgan Private Bank that is a part of J.P. Morgan Chase & Co. With $774 billion in the bank reserves, the wealth management department of J.P. Morgan has more than 1300 wealth managers across 48 branches. In the financial year 2018, it was estimated that the Private Banks part owned 28% of the total assets of J.P. Morgan Private Bank and J.P. Morgan Chase & Co.
4. Wells Fargo
Wells Fargo & Company ranks fourth in the list of the top ten global wealth management firms with more than $604 billion in the AUM (Assets Under Management). The company boasts of 15,000 wealth managers across 1468 branch offices. The total revenue of the bank had become $86.4 billion in 2018 but the net income increased by 1% to about $22.4 billion within the same duration.
The wealth management firm, UBS, ranks fifth in the Top 40 wealth management firms list published in the Wall Street Journal. The company has more than 7100 wealth managers across 208 branches of the U.S. It was recorded in the fiscal year 2018 that the operating income of UBS had increased by 2% from that of the previous year to $30.2 billion.
6. Charles Schwab
Charles Schwab ranks sixth in the Wall Street Journal list with about $421 billion in the AUM. There are 2000 wealth managers at the 345 branches spread across the United States. According to the prevalent hierarchy, the wealth management division of Charles Schwab is a part of the Investor Services department. It was recorded in 2018 that the net revenue of the investor services department has risen by about 18% from that of the previous year.
7. Vanguard Group
The Vanguard Group occupies the sixth rank with AUM worth almost $406 billion. However, Vanguard Group is different from the other companies in the list, as the company is owned by a client as opposed to the rest that are either privately-owned or publicly traded.
With $400 billion in AUM and 2400 financial managers across 200 branch offices, Fidelity ranks eighth in the list. The firm offers two kinds of wealth services that include wealth management service offered at an investment of at least $250,000 and private wealth management service offered at an investment of at least $2 million.
9. Goldman Sachs
With $300 billion in AUM and 500 financial managers at 13 branch offices, Goldman Sachs makes it mandatory for the clients to maintain at least $10 million in accounts. The net revenues of Goldman Sachs was recorded to be $7 billion in 2018.
10. Northern Trust
Northern Trust ranks tenth in the list with $260 billion in the company reserves and 680 financial managers positioned at 62 branch offices. Northern Trust provides services to clients of the highest net worth.
A few important FAQs
Which bank has the best wealth management?
Bank Of America has the best wealth and asset management department.
Who is the largest wealth manager in the world?
According to the financial statistics of 2020, BlackRock with AUM worth $7.32 trillion is the largest wealth and asset manager in the world.
Who is the best financial advisor company?
Edward Jones is the best financial advisor company followed closely by RBC, Advisor Group, and Morgan Stanley.
How much do top wealth managers make?
Financial managers and private wealth managers of the Wall Street firms earn in millions every year. Their salaries range between $500,000-$900,000 and even more.
The top global wealth management firms regulate the economies of the world and provide protection against recession and economic crisis. These companies pump a stable stream of profits into the international economy and generally cater to clients whose net worth range around millions.