What Is an Asset Management Company Stock?
If you are wondering who stands to benefit from the clean energy movement and the source of the investment dollars that support solar energy, then a good place to begin would be to learn about asset management company stocks.
So what exactly are these stocks? Essentially, asset management firms (or AMCs) are businesses that invest other folks’ funds — frequently trillions of dollars’ worth — in assets of various kinds, including stocks, bonds, real property, and now, renewable energy initiatives. By buying stock in these firms, you’re buying into the business of money handling, including their increasing investment in solar and clean technology.
Since these AMCs have such vast amounts of capital, their impact is felt in investments across markets and industries. As the world turns towards renewable energy, several of these firms are making large investments in solar energy, and owning shares of these companies provides a compelling means of participating in the solar revolution short of an investment in utilities or the manufacturers of solar equipment.
In this article, we’ll walk you through some of the top asset manager stocks fueling this trend, where they’re directing their investment dollars, and why these stocks might find a home in your investment portfolio.
Top Asset Management Company Invests in Solar Power
Some of the industry’s largest players are mentioned below, a particular focus being placed upon the support of renewables and solar.
1. BlackRock Inc. (Ticker Symbol:
- Market Capitalization: About $120 billion
- Assets Under Management (AUM): Approximately $10 trillion
BlackRock is the world’s largest fund manager with a total of $10 trillion of assets it has under management for its clients around the globe. CEO Larry Fink has been a vocal supporter of sustainable investment—calling on firms to adopt policies of ESG (Environment, Social, and Governance) initiatives. BlackRock’s investment fund portfolio includes the iShares Global Clean Energy ETF (ICLN) which has stakes in pioneering solar industry players Enphase Energy and First Solar.
By owning BlackRock shares, you are indirectly taking a grip on the solar wave through their diversified clean energy holdings. BlackRock’s size and influence are so massive that its moves tend to move market trends in the solar sector and beyond.
Data Source:
Market Cap: Yahoo Finance – BlackRock (BLK)
2. Invesco Ltd. (Ticker: IVZ)
- Market Cap: About $6.5 billion
- AUM: About $1.3 trillion
Invesco sponsors the popular Invesco Solar ETF (TAN) that invests exclusively in solar energy companies around the world. TAN has grown steadily over the past ten years, following the growth of demand for investment in renewable energy.
Investing in the stock of Invesco provides you the benefit not just of the surge in the solar investment through their funds but even the performance of their overall business, including a diversified series of asset management activities.
Data Source:
Market Cap: Yahoo Finance – Invesco (IVZ)
3. T. Rowe Price Group, Inc. (TROW)
- Market Capitalization: Around $28 billion
- AUM: About $1.4 trillion
T. Rowe Price also has an actively managed fund series with an increasing emphasis on ESG and clean-energy stocks, including solar. It has no Invesco-like solar-specific ETF but rather will lean toward holding the best clean-energy leaders in their funds based on the firm’s fundamental analysis and longer growth profiles.
Data Source:
Market Cap: Yahoo Finance – T. Rowe Price (TROW)
4. Franklin Resources, Inc. (Franklin Templeton) (Ticker: BEN)
Market Cap: Approximately $13 billion
AUM: Close to $1.5 trillion
After acquiring Legg Mason, Franklin Templeton furthered its foray into sustainable investing. Its ESG-themed funds have holdings in solar energy companies and clean utilities, setting their growth to gain from the energy transition.
Data Source:
Market Cap: Yahoo Finance – Franklin Resources (BEN)
5. State Street Corporation (STT)
- Market Cap: About $25 billion
- AUM: About $4.5 trillion
State Street is another giant, just as well known for its SPDR ETFs. Its ESG investment product lineup encompasses solar and renewable assets, including the SPDR S&P Kensho Clean Power ETF (CNRG). Together with the likes of BlackRock and Vanguard, the asset allocation by State Street is a major force in channeling capital into clean energy.
Data Source:
Market Cap: Yahoo Finance – State Street (STT)
AUM: State Street AUM
How These Asset Management Firms Are Investing in Solar Energy
These AMCs are no mere spectators — they are spearheading the solar revolution in a variety of ways:
clean energy ETFs and funds
Retail and institutional investors can directly invest in solar-related stocks via investment funds like the ICLN offered by BlackRock and the TAN from Invesco. These ETFs hold solar panel manufacturers, solar farm developers, and leaders in energy storage technology. The increasing popularity of these funds directs additional capital towards solar projects.
Direct Equity and Private Investments
Some AMCs made financial investments in solar start-ups or developed entities through venture capital and private equity arms. These comprise investment in next-generation solar farms, green infrastructure, and technology innovators.
Green bonds and Fixed Income
AMCs invest in green bonds, which fund green initiatives directly, including the development of solar plants or the development of an intelligent grid. This exposure to fixed income gives stability and encourages solar infrastructure development.
Shareholder Advocacy
BlackRock and similar firms use their shareholder voting rights to push businesses to adopt net-zero goals and greater utilization of renewable energy. This pressure leads to an industry movement toward solar and away from fossil fuel usage.
Strategic Partnerships
Asset managers are also increasingly collaborating with governments, technology companies, and NGOs to co-invest in renewable projects on a worldwide scale, enhancing their sustainability profile and long-term performance.
Why Invest in Asset Management Company Stocks for Solar Exposure?
Direct investment in solar firms can be subject to risk on the basis of regulatory changes, supply chain issues, or exposure to technology risks. Asset management company stocks offer an avenue to participate in solar growth through:
- Diversified Risk: AMCs diversify investment across industries, minimizing the risk of exposure to the volatility of an individual company.
- Expertise: Seasoned fund professionals and analysts take highly informed investment decisions.
- Indirect Solar Exposure: Enjoy the benefits of solar without selecting individual stocks.
- Dividend Income: Most AMCs distribute regular dividends.
- ESG trend alignment: With the demand for sustainable funds rising, the AMCs running these funds are likely to see growth.
Frequently Asked Questions
What are asset management company shares?
These are shares of firms which manage investment portfolios for their customers. Buying AMC shares is an investment in the company’s business of being a money manager, including their investments in renewable energy.
How do asset management companies invest in solar energy?
It makes investments in solar company direct equity, green bonds, shareholder activism, and project financing collaborations to fund solar projects around the world.
Why would I care about asset management company shares for exposure to solar energy?
Provide diversified, professional exposure to the solar industry, potentially with reduced risk and less volatility than an investment in an individual solar company.
Conclusion: Solar-Powered Finance Is the Future
The solar revolution has transformed the generation and consumption of electricity in the world. Asset management companies occupy the space where finance intersects with sustainability, and the stocks of asset management companies are an intelligent play on this growth. When you invest in the likes of State Street, Invesco, and BlackRock, you are not only gaining exposure to diversified and large portfolios but contributing to the shift towards a clean energy model. With their funds and influence, these institutions pave the way for the funding of solar projects to create a sustainable future. If you wish to invest in solar energy and yet have diversified, professionally managed investments, you may look at the shares of asset management companies.
