Magazine article American Banker

Banks Big Money Management Players

Magazine article American Banker

Banks Big Money Management Players

Article excerpt

Some of the nation's biggest banking companies lead the pack of money managers, a recent ranking shows.

State Street Bank and Trust, Bankers Trust Co., and Wells Fargo Nikko, a joint venture between Wells Fargo Co. and Nikko Securities, show up high in the asset rankings compiled by Pension & Investments, a publication that tracks the money management industry.

The rankings reflect Jan. 1 figures.

Wells Fargo Nikko tops the tax-exempt category, which includes pension, savings, and multi-employer group plan funds. With $143,757 billion of such assets, Wells Fargo is followed by State Street Bank and Bankers Trust, in second and third place respectively.

J.P. Morgan and Northern Trust also placed among the top 10 players in this category.

In the category that looks at all assets managed by institutions, and which includes personal trust, global, and retail assets, along with tax exempt assets, Bankers Trust ranks second, followed by State Street. Fidelity Investments, the mutual fund giant, had the most total assets, with $296,300 billion. Wells Fargo Nikko is in fifth place, and J.P. Morgan in ninth.

But observers said that the absence of more banks in the top ranks is as significant as the presence of a handful of banks in the top 10.

Robert G. Burke, a managing director in the global investment group at Bankers Trust, said that before 1974, when the Employee Retirement Income Security Act was passed, banks and insurance companies managed most of the available assets.

Passage of the law loosening the eligibility and management rules of pension funds has enabled independent money management firms and smaller boutiques to enter the business. …

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