HSBC Holdings PLC (HSBC) is a multinational investment bank and financial services institution headquartered in the U.K. The company's U.S.-based subsidiary, HSBC Bank USA, has its operational headquarters in New York. The company has a presence in 63 countries and territories. The company has over 40 million customers and there are a total of 219,000 full-time equivalent staff who work for HSBC worldwide.
The company's business lines include retail banking and wealth management, commercial banking, global banking and markets, and global private banking. As of Feb. 7, 2023, the company had a market capitalization of $143.04 billion.
Its largest shareholders include several major global investment institutions with a high level of interest in the company and its banking sector position. This article highlights the top three institutional shareholders of HSBC Holdings PLC based on the number of shares owned.
- HSBC Holdings PLC is a multinational investment bank and financial services institution.
- HSBC is headquartered in the United Kingdom while its U.S-based subsidiary is based in New York.
- The company's business lines include retail banking and wealth management, commercial banking, global banking and markets, and global private banking.
- Texas-based Dimensional Fund Advisors is the largest institutional shareholder of HSBC.
- Jane Street Group and Morgan Stanley round out the top three largest institutional shareholders of HSBC.
Dimensional Fund Advisors
Dimensional Fund Advisors is the top shareholder of HSBC Holdings PLC. The firm held more than 10.1 million shares of the financial services company as of Sept. 29, 2022. This represents 0.25% of HSBC's outstanding shares.
Dimensional is a private investment firm based out of Austin, Texas. The company also has affiliate offices in Canada, the U.K., Germany, the Netherlands, Australia, Singapore, and Japan. It was founded in 1981 by David G. Booth, Rex Sinquefield, and Larry G. Klotz.
The firm focuses on index funds and was one of the earliest firms to focus on these investments. DFA currently offers almost 150 equity and fixed-income mutual funds. DFA had $584 billion in assets under management (AUM). DFA's investment philosophy is rooted in the efficient market hypothesis.
Jane Street Group
Jane Street Group held more than 5,6 million shares of HSBC as of Sept. 29, 2022. This represents 0.14% of HSBC's outstanding shares. Trading services are provided under the names Jane Street Capital and Jane Street Execution Services—both of which are registered with the Securities and Exchange Commission (SEC).
Based in New York and established in 2000, the firm, has four other global offices in London, Amsterdam, Hong Kong, and Singapore. Jane Street has a team of more than 2,000 people who work with exchange-traded funds (ETFs), equities, bonds, options, and digital assets like cryptocurrencies and tokens.
Jane Street says it has proprietary electronic trading platforms and trades on more than 200 exchanges in 45 different countries.
As of Sept. 29, 2022, Morgan Stanley held about 5,21 million shares of HSBC Holdings PLC. That's 0.13% of the total shares outstanding in the firm.
Morgan Stanley is a global financial services firm. It has three major business units: Institutional Securities, Wealth Management, and Investment Management. Its investment management unit has more than $1.3 trillion in AUM across a variety of asset classes. Morgan Stanley is also involved in investment research, sales, and trading.
Founded in 1935, the company employs more than 60,000 people across the globe with its headquarters in New York. Morgan Stanley's private banking division is among the top 20 largest commercial banks in the United States.
The Bottom Line
The position of HSBC within the banking sector is of high interest to these three companies. HSBC was the eighth-largest bank in the world according to the S&P Global Market Intelligence report, which ranked banks based on their assets under management (without accounting for different accounting practices).
The bank's full-year earnings per share came in at 3.12 and its P/E ratio was 12.03. The one-year beta was 0.71. HSBC reported full-year net income of $12.61 billion on $72.66 billion of revenue.