Cerulli Report: Managed Account Assets Hit $242.8 Billion in 2011

Photo credit: <a href="http://www.freedigitalphotos.net/images/view_photog.php?photogid=2280">digitalart</a> Photo credit: digitalart

Managed account assets flows grew by 9% in 2011, according to a new report.

Cerulli Associates, Boston, published this finding in its March 2012 issue of The Cerulli Edge-U.S. Monthly Product edition. The publication is one among a suite of periodicals from the company that explore issues and trends in asset management and distribution.

Managed accounts enjoyed $242.8 billion in net flows in 2011, an increase of $20.3 billion from the 2010 total of $222.5 billion and $153 billion in 2009, the report says.

However, the report notes that separate accounts experienced the lowest asset growth among program types. Separate account assets totaled $576.8 billion at year end 2011, up 1.5% from $568.2 billion at year-end 2010.

Mutual fund advisory programs, by contrast, rose to $663.7 billion a 7% rise from the $620.6 billion recorded at year-end 2010. ETF advisory programs enjoyed the highest growth rate (42.4%), rising to $13.7 billion in assets at year-end 2011 from $9.6 billion in 2010.

The report anticipates the advisor-driven discretionary business will account for 58% of advisors’ assets by 2013, up from 48% in the second quarter of 2010. Cerulli pegs fee-based advisory discretionary assets at 50% in 2013, up from 42% in the second quarter of 2011.

The report discloses that both mutual fund and ETF assets grew in 2012, attaining, respectively, $8.4 trillion of 2012 (up 3.3% since September) and $1.2 trillion (up 4.5%) in February of this year.

Mutual fund flows in February hit $43.1 billion, up from $5.8 billion in September, while ETF flows reached $12.7 billion, up from $4.7 billion in September.

By asset class, fixed income-based mutual funds enjoyed the highest flow, rising to $34.8 billion in February from $5.3 billion in 2010. Among equity-based mutual funds, the totals were $1.9 billion in February and a negative $3.1 billion in September.

Equity-based ETF flows fared better, rising to $5.3 billion in February from a negative $3.1 billion in September. This contrasts with fixed income ETF flows of $4.8 billion in February and $5.3 billion last September.

In February, actively managed mutual funds totaled $7.3 trillion in assets, up 13.8% from the $6.4 trillion recorded in September. Passively managed mutual funds hit $1.3 trillion in assets in February, up 19.6% from $1.1 trillion posted in September, the report reveals.

Reprints Discuss this story
We welcome your thoughts. Please allow time for your contribution to be approved and posted. Thank you.

Most Recent Videos

Video Library ››