TOO BIG TO FAIL-THE POWER OF ASSET MANAGERS

I read many conspiracy theories about the world is being ruled by Rothschild and other big banks trying to control the economy of the world, and trying to create new world order blah blah blah.... I tried to cross check these theories with available data. The facts are mind blowing. According Tower Watson report the total assets under management (AUM) of the 500 managers included in the ranking totaled US$ 68 trillion at the end of 2012, up 8.2% from the end of 2011. This is an astonishing figure. Out of this Assets under management of North American managers were US$ 35.9 trillion at 2012 year end, an increase of 8.3% from the previous year. The assets managed by European managers also increased by 12.5%, ending on US$ 24 trillion. U.S. managers in the Top 20 managed 64.2% of total AUM for that group, while European managers had a share of 35.8%.

If we analyze the above data what we understand is Top 20 American asset managers are managing about 23 trillion dollars. These asset managers don't own these funds. This is the money of public managed by these BIG 20. But they are the authorized persons to invest. This is the money that is flowing in to emerging economies like India in the form of FII investments. Indian GDP is at 1.87 trillions in 2013. The total market capitalization of Indian stock markets is less than 2 trillion dollars. That means these 20 Asset Management companies can buy out all the Indian companies listed in Indian stock market with less than 10% of the total funds they have.

This may be just a hypothetical situation. But at macro level the power of these Asset Management companies can not be ignored. The collusion of these companies to rule the world may be just a conspiracy theory. But they have the capacity to control the economies across the world.