Statement and Billing Volume Analysis - Finserv and Healthcare

Part
01
of three
Part
01

Statement Volume - Asset Managers 1 (A)

There are about 76,123 unique accounts managed by trust advisors in the United States each year. Below, helpful findings have been highlighted, followed by an explanation of why the requested information couldn't be determined.

HELPFUL FINDINGS

  • There were 1,853,804 and 1,839,481 managed fiduciary accounts in the United States in 2018 and 2017 respectively.
  • In 2018, there were 3,911,491 non-managed fiduciary accounts, and 3,849,691 in 2017.
  • Therefore, there were 5,765,295 and 5,689,172 trust accounts in 2018 and 2017, respectively (managed fiduciary accounts + non-managed fiduciary accounts).
  • Thus, the number of unique trust accounts in the United States per year is approximately 76,123 (5,765,295-5,689,172).
  • Vanguard Group, Pacific Investment, BlackRock, Fidelity Investments, and Invesco, the top 5 asset management firms, manage 248, 2,442, 387, 136, and 20,331 accounts, respectively.
  • In 2013, "17 million American households owned a brokerage account."

RESEARCH STRATEGY

Your research team was not able to determine the number of unique accounts managed by asset managers on a monthly or yearly basis. The following strategies were deployed in an attempt to find, calculate, or triangulate this data.

First, we searched directly for pre-compiled data from credible industry-specific sources such as Bloomberg, Fortune, The Balance, The Office of Financial Research, among others. Although these sources addressed the state of the asset management industry in the country, the details were specific to funds managed, trends in asset fees, and other details that were irrelevant for the query. We also searched the Federal Deposit Insurance Corporation in an attempt to find relevant information, since all US asset management companies report the number of their accounts using the "Schedule RC-T" form. The team reasoned that the government entity likely knows this information and might have disclosed it publicly. This way, a list providing data on the number of assets managed accounts from 2015 to 2018 was found. However, it couldn't be used to reliably answer the query because it only addressed trust services.

Next, we took a triangulation approach to answer the query. We searched for information on the following two data points: the average number of accounts per asset manager per year/ month and the number of asset managers in the US. Since we had already found relevant data on trust services, we focused on finding this information specifically on brokers and investment managers, but we struggled to find information on the former data point, which is why this strategy failed. The available information included the total number of asset managed accounts (not unique) by each of the top 50 asset managers worldwide, the number of mutual fund managers, among others, which weren't relevant in providing a proper triangulation.

We then decided to focus our search specifically on unique asset management customers. To triangulate an answer to the query, we searched for the following data points: the average number of asset management accounts per US person and the population of the US. The team also searched for the number of people in the US who use asset management services and the average number of asset management accounts per individual who uses asset management services, specifically. We weren't able to move forward with this triangulation because information on the number of people in the US who use asset management services, the average number of asset management accounts per an individual who uses asset management services and the average number of asset management accounts per a US person were not available in the public domain. Instead, available information focused on irrelevant things such as asset management market sizes in US dollars and future predictions.

Finally, we combed through the financial reports of some top asset mangers in the United States listed on this report to find the number of accounts held by each company yearly, to calculate the total number of unique accounts. After looking through their annual reports, it was evident that most of them didn't provide information specifically on the number of accounts they have and most of them didn't provide account information about the US, which is why the answer couldn't be reliably estimated using data from the biggest players in the field. Still, we provided available account data for some companies as helpful findings.
Part
02
of three
Part
02

Statement Volume - Asset Managers 2 (A)

The number of annual shareholder proxy statements and annual reports sent to customers on a monthly or yearly basis by asset managers could not be determined due to the lack of available data. Still, relevant customer (account holders) insights have been gathered for some of the biggest asset management companies. Below, research strategies deployed in an attempt to obtain the requested information have been outlined.

HELPFUL FINDINGS

  • The biggest US asset management companies are as follows: BlackRock, Vanguard Group, State Street Global Advisors, Fidelity Investments, and J.P. Morgan Asset Management.
  • Vanguard Group has 248 accounts under management.
  • State Group Global Advisors manages accounts for 1,579 customers.
  • BlackRock manages accounts for 26,151 customers.
  • Fidelity Investments and J.P. Morgan Asset Management have 136 and 613 accounts under management, respectively.
  • Other notable asset management company customer information: BNY Mellon — 721 accounts; Prudential Financial — 698 accounts; Goldman Sachs — 733 accounts; Morgan Stanley —1,523,145 accounts.

RESEARCH STRATEGY

Your research team was unable to determine the number of annual shareholder proxy statements and annual reports sent to customers/account holders on a monthly or yearly basis by asset managers, even after applying the following exhaustive research strategies:

First, the team searched through various industry-related sources such as Bloomberg, The Motley Fool, Guru Focus, CNBC, among others, for pre-compiled information on this topic. We deployed this approach because these publications ordinarily give commentaries on companies that are in the stock market, and therefore they are likely to discuss asset managers listed on the stock market; for example, BlackRock, and might compare the number of shareholder proxies and annual reports a particular company has sent with the total amount sent in the industry. Press releases and reports from the U.S. Securities and Exchange Commission were also scanned with intent to locate relevant information since the governmental entity might know this information and disclose it publicly. Although extensive reports surrounding particular asset managers in the field existed, they focused on company acquisitions and mergers, trends in asset managed fees, funds managed, among others, rather than information specifically surrounding annual reports and shareholder proxies sent by the companies in the asset management space.

Next, we searched press releases and annual reports of the biggest asset management companies. The assumption here was that, since the biggest companies in the field take up the majority of the market, it would make sense to present the total number of shareholder proxies and annual reports sent by them as a rough estimate of the number of proxies and reports sent to shareholders by asset managers in the US. We used this list to identify the biggest US asset management companies. Then, we examined their annual and operational reports, as well as press releases from the year 2018. Apart from this, we examined interviews with CEOs from each of the companies but determined that these databases focus mostly on company promotions, assets under management (AUM), the number of accounts held, rather than information on the number of annual reports or proxies sent.

Finally, the team planned to locate the following data points: the number of shareholder proxies and annual reports sent to customers by companies in the financial industry in general, and the amount of the financial services industry asset management companies take up. The idea was to assume that the proportion of annual reports sent by companies in the asset management industry compared to companies in the financial service industry overall equals the market share of asset management within the financial service industry. This strategy failed to produce results because of the lack of publicly available information about the number of annual reports sent by companies in the financial industry. The available information described the best practices and strategies specific companies in the financial industry apply when it comes to proxy announcements, rather than specific data.
Part
03
of three
Part
03

Statement Volume - Asset Managers 3 (A)

An extensive search in the public domain reveals that information on the number of securities traded annually by Asset Managers is non-existent, and media coverage on the specified topic is not available. Helpful findings have been highlighted below.

Helpful findings

  • In 2017, about 505 billion U.S. dollars treasury securities are traded per day on an average in the US." This means that every day the market was open, the average amount of U.S. government securities bought and sold amounted to half a trillion U.S. dollars in that year."
  • Private equity firms in the US invested more than $500 billion "in the US-based companies in 2017", by the end of 2018 this investment was estimated at $713 billion.
  • The annual purchases of equities from 1999 to 2001 was estimated to be $142 billion in the United States.
  • There were 5,765,295 trust accounts active in December 2018 (managed fiduciary accounts + non-managed fiduciary accounts).
  • Charles Schwab had 11.6 million active brokerage accounts and 1.7 million retirement plan participants in 2018.
  • In 2013, 26.7% of US households had a brokerage account.
  • Vanguard Group, Pacific Investment, BlackRock, Fidelity Investments, and Invesco, the top 5 asset management firms, manage 248, 2,442, 387, 136, and 20,331 accounts, respectively.

RESEARCH STRATEGY

The research team was unable to reliably determine the average monthly /annual number of securities traded by brokers, investment managers and trust advisors. The following strategies have been deployed in an attempt to find, calculate or triangulate this data.

We started the research by searching for pre-compiled data on the notices of annual purchases and sales of securities sent to customers either on a monthly or yearly basis by asset managers. We searched through reliable sources in the finance industry such as Forbes, Fortune, CNBC, The Balance, The Office of Financial Research, among others. This strategy failed to give us the information we wanted because the information found was mainly about investment type and volume. We also searched the Federal Deposit Insurance Corporation in an attempt to find relevant information, since all US asset management companies report the number of their accounts using the "Schedule RC-T" form. The team reasoned that the government entity will likely know the number of securities they trade annually and might have disclosed it publicly. However, the strategy did not provide any relevant findings on the number of securities traded annually by asset Managers.
Our next strategy was to search for this information on the customer part by searching for the number of notices they receive from their asset managers. We searched through news articles and research reports sites such as Market Insights, Mordor Intelligence, PRNews, and Business Insider. We hoped to find the number of notices on annual purchases and sales of securities, customers receive. This strategy was unsuccessful because we could not find relevant information on the subject, most of these sites had data on the number of investments.
Finally, we combed through the financial reports of some top asset managers in the United States listed in this report to find the number of accounts held by each company yearly, to calculate the total number of securities traded annually by these Asset Managers. After looking through their annual reports, it was evident that most of them didn't provide information specifically on the number of securities they trade annually, which is why the answer couldn't be reliably estimated using data from the biggest players in the field.

Sources
Sources