4 ms·

It's alarming that a company I've never heard of has 7 trillion dollars.

by clSTophEjUdRanu 7y ago

the_watcher 7y ago
They manage $7T, they don't "have" it in the sense that you have money in your bank account.
- eigenvalue 7y ago
  They don't really even "manage" most of that in the traditional sense, like a private equity fund sponsor would. The $7.4T refers to "assets under administration" as opposed to "AUM" (assets under management). This is apparent if you observe that they are expected to make ~$16b of revenue in 2020-- if you remove software revenues, that's probably less than 20 bps (0.2%) relative to the $7.4T figure, which is far less than most fund managers earn on average.
  - the_watcher 7y ago
    According to Valuewalk, they had $6.5M AUM as of July 2019.[0] Their size is primarily a function of the passive indexing they offer, do you consider that AUA? Or AUM? I'd argue that it's AUM. The reason their revenue is so low (by bps) is that indexing is extremely low-fee. [0] https://www.valuewalk.com/2019/07/top-10-largest-asset-management-companies/ https://www.valuewalk.com/2019/07/top-10-largest-asset-manag...
    - dmoy 7y ago
      s/M/T/, yea? Blackrock is still the largest asset manager. Vanguard is closing the gap.
dmoy 7y ago
Blackrock is one of the biggest group of funds. Some of them are branded as iShares. If you've done any comparison shopping on index funds for investments, you almost certainly ran across blackrock funds even if you didn't know it.
- perl4ever 7y ago
  Yes, but people are talking about a decision about active funds, not indexes where most of the money is. It would be earthshaking if they decided to substitute their judgment for the market and take coal stocks out of all the index funds. But that's not what is being reported. The reporting seems to be kind of willfully implying a connection that isn't there to get clicks, which I guess is basically all journalism these days.
dv_dt 7y ago
If you follow the financial industry, you would have heard of Blackrock sooner or later.
agumonkey 7y ago
it's been covered in a few documentaries (at least in Europe) but yeah it's still quite a low profile considering it's weight
- IndiaLends 7y ago
  There's an Indian equivalent called IndiaLends [0]. They also offer an Online Personal Loan [1]. [0] https://indialends.com/personal-loan https://indialends.com/personal-loan [1] https://indialends.com/credit-card https://indialends.com/credit-card
MintDice 7y ago
I've been saying for some time that it is best if these types of dollars can be put to use in a more transparent sense, typically with blockchain or other technologies that open things up so they are more transparent. $7T is a lot, of course it isn't as if they own it, it's more what they are arranging for. https://mintdice.com/blog/institutional-money-to-drive-a-second-crypto-boom https://mintdice.com/blog/institutional-money-to-drive-a-sec... Any of these types of mechanisms can help drive things forward.

It's alarming that a company I've never heard of has 7 trillion dollars.

the_watcher 7y ago

They manage $7T, they don't "have" it in the sense that you have money in your bank account.

eigenvalue 7y ago
They don't really even "manage" most of that in the traditional sense, like a private equity fund sponsor would. The $7.4T refers to "assets under administration" as opposed to "AUM" (assets under management). This is apparent if you observe that they are expected to make ~$16b of revenue in 2020-- if you remove software revenues, that's probably less than 20 bps (0.2%) relative to the $7.4T figure, which is far less than most fund managers earn on average.
- the_watcher 7y ago
  According to Valuewalk, they had $6.5M AUM as of July 2019.[0] Their size is primarily a function of the passive indexing they offer, do you consider that AUA? Or AUM? I'd argue that it's AUM. The reason their revenue is so low (by bps) is that indexing is extremely low-fee. [0] https://www.valuewalk.com/2019/07/top-10-largest-asset-management-companies/ https://www.valuewalk.com/2019/07/top-10-largest-asset-manag...
  - dmoy 7y ago
    s/M/T/, yea? Blackrock is still the largest asset manager. Vanguard is closing the gap.

dmoy 7y ago

Blackrock is one of the biggest group of funds. Some of them are branded as iShares. If you've done any comparison shopping on index funds for investments, you almost certainly ran across blackrock funds even if you didn't know it.

perl4ever 7y ago
Yes, but people are talking about a decision about active funds, not indexes where most of the money is. It would be earthshaking if they decided to substitute their judgment for the market and take coal stocks out of all the index funds. But that's not what is being reported. The reporting seems to be kind of willfully implying a connection that isn't there to get clicks, which I guess is basically all journalism these days.

dv_dt 7y ago

If you follow the financial industry, you would have heard of Blackrock sooner or later.

agumonkey 7y ago

it's been covered in a few documentaries (at least in Europe) but yeah it's still quite a low profile considering it's weight

IndiaLends 7y ago
There's an Indian equivalent called IndiaLends [0]. They also offer an Online Personal Loan [1]. [0] https://indialends.com/personal-loan https://indialends.com/personal-loan [1] https://indialends.com/credit-card https://indialends.com/credit-card

MintDice 7y ago

I've been saying for some time that it is best if these types of dollars can be put to use in a more transparent sense, typically with blockchain or other technologies that open things up so they are more transparent. $7T is a lot, of course it isn't as if they own it, it's more what they are arranging for. https://mintdice.com/blog/institutional-money-to-drive-a-second-crypto-boom https://mintdice.com/blog/institutional-money-to-drive-a-sec... Any of these types of mechanisms can help drive things forward.