Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Industry Spotlight > Broker Dealers

Advisors Haven't Given Up on Managed Accounts

Your article was successfully shared with the contacts you provided.

In reaction to the massive market turmoil of the past year, many advisors have begun to question their traditional allocation and investment strategies. One area where advisors do still seem to have a great deal of confidence is in the area of managed accounts.

According to a new report from Cerulli Associates–State of Managed Accounts: Industry Outlook–fewer than 3% of advisors believe their allocation of client assets toward managed account programs will decline in the near future. This is heartening news for the managed accounts industry since aside from a 28.8% loss of assets ($538 billion) between the first quarters of 2008 and 2009, a loss of faith in asset allocation and mean-variance optimization could cause the programs to crumble.

The report also notes that addressing market volatility and investor sensitivity are two of the biggest challenges facing advisors and program sponsors. Special attention is given in the report to the impact from advisors moving between broker/dealers and the role that managed accounts play.

More information on this report is available here.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.