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They manage $7T, they don't "have" it in the sense that you have money in your bank account.
by 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 agoThey 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 agoAccording 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 agos/M/T/, yea? Blackrock is still the largest asset manager. Vanguard is closing the gap.