Investable assets market firms will be chasing an $80 trillion market by 2017, according to a new report.
Tiburon Strategic Advisors, Tiburon, Calif., published this in a summary of results from its survey, “State of the Financial Products and Services Businesses: Deleveraging, Increasing Investable Asset Options, and Growing Insurance Demand.” The March 2013 report is part of Tiburon’s Financial Institutions Research Series.
The report discloses that investable assets market firms have gathered $63.1 trillion assets under management, up 30% since 2004 but down from its peak of $69.4 trillion in 2007. Mutual funds assets under management total $13.0 trillion, including $11.6 trillion in open-end mutual funds. Open-end mutual funds have gathered $11.6 trillion assets under management, up 300% since 1995 but down from its peak of $12.0 trillion in 2007
Closed-end mutual funds have gathered $239 billion assets under management, up over 50% since 1995 but off its peak of $312 billion in 2007
Unit investment trusts, the report adds, have gathered $60 billion assets under management, down 20% since 1995. The ETFs and indexing product market has gathered $5.1 trillion assets under management, including $3.0 trillion in indexed separate accounts
Exchange traded funds have net flows of $185 billion, up 500% since 2001, and above their prior peak of $177 billion in 2008. The report also pegs global hedge funds at more than $3.0 trillion, the total including U.S. hedge funds, managed futures funds, hedge fund mutual funds, and non-U.S. hedge funds.
Among the report’s additional findings:
Nearly one-quarter of all financial advisors plan to offer wealth management services to their clients in the next twelve months.
Consumer household personal assets declined $1.2 trillion or 5% since 2006 to $25.6 trillion.
The number of insured households will increase to 305 million by 2012.
The number of insurance industry policies will increase to 219 billion by 2012.
Insurance in force is on the rise, increased to $78 billion by 2012.
Life insurance agents are who hold NASD securities licenses are expected to reach 55% by 2012.