NCPA - National Center for Policy Analysis

Government Would Be Largest Single Investor

January 25, 1999

If the Clinton administration were to put the $700 billion in Social Security funds that it wants to invest in the stock market over the next 15 years in stocks today, the federal government would immediately become the largest single investor.

Here is how that amount would compare to the current holdings of the market's largest private investors:

  • Fidelity Management and Research has a $450 billion stake in the market.
  • Barclays Bank is invested to the tune of $327 billion.
  • State Street Bank's holdings amount to $199 billion.
  • Some $190 billion in assets belongs to Bankers Trust of New York and $180 billion is held by Capital Research and Management.

Since 1986, federal employees in the executive, legislative and judicial branches of government have been covered by a retirement plan that invests a portion of their savings in the stock market. But the assets are far smaller than the investments contemplated by President Clinton.

Source: Diana B. Henriques, "Social Security Investment Plan Raises a Debate," New York Times, January 24, 1999.


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