Plunkett Research®, Ltd.

Market Research, Industry Statistics, Trends
and In-depth Analysis of Top Companies

When you want Affordable, Timely Industry Research,
Contacts & Business Development Data

Loading Search
Investment

Investment & Securities Industry Market Research




Investment Industry:

  • Market Research
  • Industry Trends Analysis
  • Technologies Analysis
  • Business Intelligence
  • Top Companies Database
  • Business Leaders and Corporate Executives
  • Industry Associations Database
  • Export Tools - Build
    Mailing Lists
$299 to $349 gives you 1-year online, plus our printed industry Almanac
Purchase Options
Print - Online - eBook
Get a Quote on a custom market research
project



Secure online ordering, encrypted by Network Solutions. Or, call 713.932.0000
Investment & Securities Industry Overview

¹ Video Tip
For our brief video introduction to the Investment industry, see www.plunkettresearch.com/video/investment.
 
The investment industry is comprised of a wide variety of sectors and service providers. At the top of the list are the giant asset managers, like BlackRock, a firm managing more than $4 trillion in investment assets, an amount so immense that it is roughly equal to the gross national products of Russia and India combined. Also at the top of the industry are the biggest exchanges, were billions of shares trade hands yearly, along with the major investment banks, those firms that raise money for corporate clients by selling their stocks and bonds to the public. Investment banks also deal in private equity investments and asset management, and they earn immense fees by brokering mergers and acquisitions.
Then there are the big firms that provide stock brokerage services. Some of them, like Merrill Lynch, are also investment banks. Others, like Charles Schwab, are primarily stock brokers that deal with millions of individual customers. However, the lines have blurred between sectors in recent years. It is common for one firm to operate in multiple segments of the business at once: commercial banking, investment banking, asset management, insurance, mortgages, financial advisory, venture capital, mergers and acquisitions and more.
The Global Investment Industry: This is a massive, global industry, and, in light of the fact that it provides the services that enable companies to have access to capital, it is one of the most important industries of all. 
Global mutual fund assets totaled $27.44 trillion on June 30, 2013, according to the Investment Company Institute. 
The World Federation of Exchanges estimated the total value (market capitalization) of stocks on all of the world’s significant exchanges at $63.3 trillion as of November 30, 2013 (up from $47.4 trillion at the end of 2011), with shares available in 45,438 companies. Worldwide during the first 11 months of 2013, 50.2 trillion shares were traded.
After an extremely turbulent environment during the recent recession, the global investment industry has been greatly altered. Lehman Brothers was allowed to fail completely. Bear Stearns was taken over by JPMorgan Chase at a nominal price. Global banking and investment industry leader RBS (Royal Bank of Scotland) was bailed out with public funds to the extent that it became controlled by the UK government. Insurance industry giant AIG was bailed out by the American government. The world became familiar with phrases like “toxic assets,” and American taxpayers, whether they liked it or not, backed emergency plans and market support programs with acronyms like TARP (Troubled Asset Relief Program) and TALF (Term Asset-Backed Loan Facility).  By the end of 2009, the U.S. government had created initiatives based on corporate bailouts, asset purchases, emergency lending and financial market support totaling more than $2 trillion. These were only a few of the massive changes wrought by the upheaval of the global financial crisis that began quietly in the late summer of 2007 and roared into a full financial hurricane in 2008.
By the end of the painful 2008-09 period, the investment industry, on a global basis, had been through losses, layoffs, scandals, bankruptcies, forced mergers, government intervention, bailouts and/or disappointments on a scale not seen in decades. In 2010 through 2013, the investment industry began rebuilding and reshaping its strategy, and the industry generally enjoyed robust business, with strong IPO volume and high stock market values.
Regulation: In the U.S. and Europe, one rapid result of the global financial crisis was a cry in the halls of government for greatly increased supervision and revamped regulation of the financial industry, from banking to insurance to the investment sector. 
The biggest changes faced by commercial banks that plan to comply with the latest round of recommendations, the “Basel III” accords, will be in raising sufficient capital. The Tier-1 minimum capital requirement will increase to 10.5% by 2019. (Tier-1 capital is a ratio of equity capital plus stated bank reserves to assets, and is a commonly used measure of a bank’s core financial stability. The massive UK bank RBS had only about 3.5% of Tier-1 capital when the financial crisis began, and the bank promptly failed. U.S. banks endured losses equal to about 7% of assets during the recent crisis.) The intent is to make it much less likely that massive bank failures will be faced in the future, even during a major financial upheaval.
A looming issue that remains is known as the “leverage ratio.” As of mid 2013, this rule had not been finalized, but it could eventually impose stringent, additional capital requirements on banks. The rule is intended to limit banks' ability to use sophisticated accounting and special corporate structures to build up liabilities off of their balance sheets. It is intended to be in place by January 1, 2015. The leverage ratio is calculated by dividing Tier 1 capital by total consolidated assets.
In the U.S. a sweeping reform bill, the Dodd-Frank Wall Street Reform and Consumer Protection Act, was signed by President Obama in July 2010, after European finance ministers approved similar regulations for much of Europe a few months earlier. In general, requirements under the law include broad powers for the government to monitor systemic financial risk and to intervene where it deems necessary. For example, it requires a bank to shrink in size if the government believes that the bank is posing financial risks, and an orderly liquidation process has been set out for extreme cases in which regulators need to seize and auction off financial firms that are nearing bankruptcy.
In June 2012, the U.S. Federal Reserve Board approved three proposals implementing the Basel III standards. Basel III requirements and capital increases were planned to be phased-in at American banks starting on January 1, 2013. However, after wide-ranging complaints and criticism, the Federal Reserve, in November 2012, delayed implementation of a large part of the requirements pending further study. 
More recently, the long-awaited Volcker Rule was finalized in December 2013. This is an effort to limit the trading in stocks, bonds, swaps, hedges, derivatives, etc. that banks can participate in for their own accounts (as opposed to trading for the direct benefit of specific clients). The intent is to limit the risks that banks may take, and therefore reduce the likelihood of massive bank failures. However, the list of exceptions allowed is so extensive that the rule leaves much open to future interpretation. For example, the rule allows banks to trade for "liquidity management" and to maintain adequate inventory of financial risk for their day to day "market maker" activities. 
The U.S. Investment Industry: Employment in America alone, in firms that are involved in securities and investments, was estimated at 833,000 as of October 2013, up by about 30,000 from the previous year according to numbers published by the U.S. Bureau of Labor Standards.
About 51 million Americans participate in 401(k) investment plans at their places of work, with assets totaling about $3.5 trillion as of June 2013. Mutual funds in America held $14.6 trillion in assets as of October 2013, while ETFs held $1.61 trillion. U.S. retirement account assets totaled about $20.9 trillion in mid 2013, according to ICI, the Investment Company Institute (www.ici.org).
America’s stock exchanges are highly electronic today, trading vast amounts of stocks, bonds and options at blazing speed. Average daily volume on the NYSE was running at a 1.04 billion shares rate in late 2013 and a 1.76 billion shares rate on the NASDAQ.

View More



Video Introduction to Investment & Securities Industry
Complete list of market research data provided by Plunkett Research, Ltd. for the Investment & Securities Industry
  • Investment Banks Enjoy Strong Markets in IPOs, Mergers and Acquisitions
  • Basel III, Dodd-Frank Act and Volcker Act Increase Regulation
  • Shadow Banking Offers Alternative Lending Sources
  • Investment Market Booms in China
  • Aging Populations, Baby Boomers Create Opportunities/U.S. Pension Accounts Top $24.0 Trillion
  • Employers Make 401(k) Enrollment Automatic/Broad Changes are Suggested for Retirement Savings Plans
  • Investment Firms, Banks Compete for Clients in High Net Worth Households
  • ETFs Expand and Take Market Share from Mutual Funds/Mutual Fund Managers Are Forced to Change
  • Online Brokers Open Physical Offices/Online Trading is Free for Large Depositors
  • Hedge Funds Regroup, Change Strategy and Sometimes Lower Fees
  • Private Equity Firms Focus on Growing Their Portfolio Companies and Making Alternative Investments
  • Annuity Account Managers Create New Product Strategies
  • Credit Default Swaps (CDS) and Derivatives Soar into the Trillions of Dollars
  • Stock Exchanges Merge/High Speed Technologies Force Massive Changes
  • Investment Product Facts
  • Complete list of statistics data provided by Plunkett Research, Ltd. for the Investment & Securities Industry
  • Investment & Securities Industry Overview

  • Stock Market Performance Indices, U.S.: 1985-2013
  • Stock Market Volume, U.S.: 1985-2013
  • Value Traded on the NYSE & NASDAQ Stock Exchanges: 1985-2013
  • Common Stock Prices & Yields, U.S.: 1985-2012
  • Sales, Profits & Stockholders' Equity, All Manufacturing Corporations, U.S.: 1985-Q3 2013
  • Components of U.S. Money Stock Measures: 1980-2012
  • Treasury Securities Outstanding by Kind of Obligation, U.S.: 1985-2012
  • Estimated Ownership of U.S. Treasury Securities: 2005-2013
  • Public Debt Securities Held by Private Investors, U.S.: 1985-2012
  • Average Interest Rates of 3-Month & 10-Year U.S. Treasuries: 1985-2013
  • Time Deposits & Savings Deposits of Individual Retirement Accounts (IRAs), U.S.: 2005-Q2 2013
  • Retirement Benefits in the U.S.: Access, Participation and Take-Up Rates, March 2014
  • Employment in the Investment & Securities Industry, U.S.: 2007-2013
  • Securities, Commodity Contracts & Other Financial Investment Activities, Estimated Revenue for Employer Firms, U.S.: 2007-2013
  • Securities, Commodity Contracts & Other Financial Investment Activities, Estimated Sources of Revenue for Employer Firms, U.S.: 2009-2011
  • Table of Contents for Plunkett's Investment & Securities Industry Almanac  
    See Full Table of Contents

    introduction 1
    how to use this book 3
    chapter 1: major trends in the investment & securities industry 7
    1) investment & securities industry overview 7
    Profiles of Leading Investment & Securities Companies are provided, including Public, Private, U.S., and non-U.S. Firms.  
    See Full List of Companies

    • 3i Group plc
    • A B Watley Group Inc
    • Aberdeen Asset Management plc
    • Advent International Corporation
    • Affiliated Managers Group Inc
    • AGF Management Limited
    • AllianceBernstein Holding LP
    • Allianz Global Investors of America LP
    • Allianz SE
    • Allied Irish Banks plc
  • Allied Irish Banks plc
  • Allstate Corporation (The)
  • Ambac Financial Group Inc
  • American Capital Agency Corp
  • American Century Companies Inc
  • American Equity Investment Life Holding Co
  • American International Group (AIG)
  • Ameriprise Financial Inc
  • Amp Limited
  • Annaly Capital Management Inc
  • Key Investment & Securities Industry Topics
  • Investment Banking
  • Stock Brokerage
  • Discount Brokers, Online Brokers
  • Pension Funds
  • Asset Managers
  • Private Equity
  • Financial Planning
  • Stocks, Bonds, Exchanges
  • ECNs, ETFs
  • Mutual Funds, Financial Services
  • E-Commerce
  • Venture Capital
  • Support Services
  • Marketing
  • Consolidation
  • Profiles of Leading Companies
  • Executive Mailing Lists