NU Online News Service, Nov. 22 10:19 a.m. – Financial Research Corp., Boston, today released a study that says that in spite of the challenges to asset growth in the separately managed account industry posed by difficult equity markets in the first nine months of this year, new people continued to invest in separately managed accounts.
Money Management Institute, Washington, is distributing the FRC study to its members this week.
According to the study, the industry added 330,000 new investors during 2002′s first nine months, and by year-end the industry will likely grow to more than 2 million total individual accounts.
Financial Research Corp. estimates that the number of individual accounts in the managed account industry grew 10.1% in 2002′s first quarter and 4.6% in the second quarter, representing a 15.1% increase in the number of investors participating in the accounts from year-end 2001 through June 30, 2002.
Financial Research Corp. projects that, as of Sept. 30, 2002, the total number of accounts was up more than 20% from year-end 2001.