Variable annuity assets managed by subadvisors are expected to grow by 25% by year-end 2014, according to a new report.
Cerulli Associates, Boston, published this finding in the July 2012 edition of “The Cerulli Edge: U.S. Asset Management.” The monthly publication analyses topics related to product development and strategy, distribution, pricing, and market segmentation.
Cerulli estimates that variable annuities under management with subadvisors will grow to $787 billion by year-end 2012, $849 billion at year end 2013 and $915 billion at year-end 2014.
Subadvisors are investment manager hired by Registered Investment Advisors to oversee day-to-day portfolio management of retail clients’ investments.
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Long-term mutual funds and retail separate accounts managed by subadvisors are anticipated to grow over the same period to, respectively, $1.74 trillion and $326 billion (2012), $1.95 trillion and $332 billion (2013) and $2.066 trillion and $337 billion.