NU Online News Service, Sept. 3, 2003, 5:12 p.m. EDT – The top 25 separate-account asset-management companies accounted for 64% of U.S. managed-account assets in 2002, according to Cerulli Associates Inc., Boston.
Managers ranked from 51 through 100 controlled just 3% of the managed-account assets, Cerulli reports.
Investing in a separate account is supposed to protect sophisticated, long-term investors against panic selling by the bumpkins who invest in ordinary mutual funds. But Cerulli found that the separate account asset managers it interviewed have experienced a 33% redemption rate, compared with a 27% redemption rate for stock mutual funds.
Net assets invested with fixed-income managers increased 79% between the third quarter of 2001 and the fourth quarter of 2002, Cerulli says.