Mapping The World's Trillion-Dollar Asset-Manager Club

Tyler Durden's picture

In the late 1700s, it was the start of the battle of stock exchanges: in 1773, the London Stock Exchange was formed, and the New York Stock Exchange was formed just 19 years later.

And while London was a preferred destination for international finance at the time, Visual Capitalist's Jeff Desjardins notes that England also had laws that restricted the formation of new joint-stock companies. The law was repealed in 1825, but by then it was already too late.

In the U.S., exchanges in New York City and Philadelphia took full advantage by dealing in stocks early on. Eventually, for this and a variety of other reasons, the NYSE emerged as the most dominant exchange in the world – helping propel New York and Wall Street to the center of finance.

THE CENTER OF FINANCE

Wall Street, and the U.S. in general, is now synonymous with finance – and most of the world’s largest banks, funds, and investors maintain a presence nearby. The biggest asset management companies, which pool investments into securities such as stocks and bonds on behalf of investors, are no exception to this.

Today’s chart shows all global companies with over $1 trillion in assets under management (AUM).

Courtesy of: Visual Capitalist

Not surprisingly, all but 17.1% of assets managed by this $1 Trillion Club are overseen by companies based in the United States.

Even further, outside of Northern Trust (Chicago), Pimco (Newport Beach), and Capital Group (Los Angeles), the remaining U.S. companies are based in the Northeast specifically – either on Wall Street, or just a short drive away.

THE NEWEST ENTRANT

The newest entrant to the $1 trillion club is Norway’s sovereign wealth fund, which is managed by Norges Bank Investment Management. It’s the world’s largest sovereign wealth fund, and it was “never forecast” to get so big.

The Norwegian fund recently joined France’s Amundi ($1.6 trillion), the UK’s Legal & General ($1.3 trillion), and Japan’s Goverment Pension Investment Fund ($1.2 trillion) as non-U.S. members of this exclusive club.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Peter Pan's picture

The bigger they get the harder they fall

old naughty's picture

where does the "squid" fit in?

Who "owns/manages" the debts/derivatives (aren't they a lot bigger in scale)?

Cassandra.Hermes's picture

All them are very decentralized and diversified, only world default can technically default them, though the world default is not correct since they don't own the assets they just managed them for a fee based on transaction not value.

McDuff71's picture

...but what exactly is a trillion 'promises'? ...this is just dumb-ass fool speak...imagine you could just print whatever amount of cash you wanted out of thin air backed/based on nothing ...it's just a big fat less than zero ponzi piece of bullshit anyways...they are managing 1's and zeros, nothing else ...what a load of bullshit...

Obsidian Samctum's picture

Companies in the US are trusted. Do some trip up now and then? Sure, but compare that to say china and you see why US companies are trusted more.

uhland62's picture

Big risk through too many eggs in one basket. Before the 2008 crisis, 75 % of all capital in the world was controlled from the US.

That's why the crisis was so bad - too many eggs in one basket.  

Obsidian Samctum's picture

Could it have been worse had it been spread out?

Manipuflation's picture

Well, I ended up in UI court vs SHLD.  SHLD didn't show up to the hearing.  I am on shaky ground but I have a chance but I did read the law and palyed that angle.  I demonstrated that the terms of employment were altered after hire.  That fact qualifies me as a reason to quit my job.  The judge knew it and so did I.  I might not win this one but who knows.  If I do win, that is a good chunk of change.  They closed my store.

I went through this once before in the wonderful economy we have and won.  Let's do it again because I paid for it anyway.  I had the judge in a pickle this time becaus she was asking questions that only SHLD could answer.  I had to object because those were not questions I could answer.  I told Judge Clitoris that she would need to ask SHLD counsel who was not present.

If I lose then I lose but it was a good try.:-)

They announced the closing of the Sears full line store today in St Cloud.  Fuck Eddie Lampert.  

McDuff71's picture

...very best of fortune to you Sir...

Manipuflation's picture

I am alright because I own gold and have cash.  I was not about that.  It is about what is right.  I have no problem taking on a state level judge.  I can't become better if I don't do these sorts of activiies.

McDuff71's picture

...mate the principled fight is usually the hardest and most difficult...many just give up so I genuinely applaud your efforts...no easy thing in this era of vested interests...

Manipuflation's picture

It's not over.  I work in a small world where some people trust me.  I am very good at it and they called me.  I called my biggest customer who is good for 100K plus and they called me back.  I have a book of business.  I can do damage to the competition and it turns out that GM worked for LESCO so we are brothers.  I am hard core with being out in the field and in sales.  You have to be.

They all know that I go out and get dirty.  No one can take that away from me.  I know what I am doing on all sides from golf course to lawn care.  It does no matter to me because after 25 years not much is going to surprise me.  I have taken the STATE pesicide applicators license test about five times.  That was a joke.  The last .gov asshat told me I would fail because I didn't study but I scored perfect.  It is not my first day around the block.

If you want the best then you have to pay for it. 

World Cash Day's picture

Does SHLD stand for She wHo Loves Dick?

The_Passenger's picture

They forgot all the central banks!

BigWillyStyle887's picture

Sure seems to be a lot of green around New York City. I am almost certain Kim Jong Un would have zero interest in information like that.

rpboxster's picture

Schwab has 2.7T AUM.  More than Fidelity, but not on the list.  Hmmm.

JelloBeyonce's picture

One just has to perform a lookup the largest shareholders of public companies to realize these asses management firms are the largest owners of most of the largest companies in most any industry.  Competition?  Forget it.  These firms are creating virtual monopolies.

 

Home Depot & Lowes are owned by the same core group of largest corporate shareholders.

Coke & Pepsi are owned by the samecore  group of largest coporate shareholders.

The six largest banks are owned by the same core group of largest coporate shareholders.

The six largest airlines are owned by the same core group of largest shareholders

Apple, Microsoft, Google are owned by the same core group of largest shareholders.

The largest public defense contractors are owned by the same core group of largest shareholders.

Gm, Ford and Chrysler are owned by the same core group of largest shareholders.

 

And the list goes on, and on, and on.

 

By acquiring such large chunks of shares of most public companies, these asset management firms gain certain and definite operational controls over these companies.  They can collude to limit wages, increase pricing, fees, control inventory & stock, negate customer service, etc.

These asset management firms usually demand Board seats on the companies they own....thereby influencing/controlling Executive actions.

By gaining control of such large chunks of shares of most public companies, these asset management firms can easily control supply of shares, & therefore highly manipulate the stock prices (stock prices fall when too many shareholders sell too many shares, these largest corporate shareholders can control those large sell volumes - thus manipulating price).

 

These asset management firms couldn't care less if you get fed up with, and leave say Google for Apple.....they still see the profits via their stock holdings in Apple.  Ditto for the largest airlines.  If you get fed up with the service fees on say American, and decide to fly say Delta instead.  Delta (and the other largest airlines) have followed suit with the same fees. 

 

The money still continues to flow to the people that control these largest money managment firms.

 

They are the Lords, you are merely their servants. 

Drop-Hammer's picture

Gives me a warm fuzzy feeling that the world's assets are managed by the Christ-killers.