How do asset management firms operate and how do they make money? (Like BlackRock or Vanguard)

Question

What does it mean to manage assets? What is the role of an asset manager and what is the benefit to the client company?

In: 5

Answer 1

They charge a small % fee for the funds that they manage. Since they manage billions (trillions?) of dollars, even a small % fee is a lot of money. They may also provide other paid services like brokering stock trades, 1-on-1 consulting, etc.