Close Close
Sign In
Newsletters
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
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Portfolio > ETFs > Broad Market

U.S. retains lion’s share of mutual fund industry net revenue

By Warren S. Hersch

X
Your article was successfully shared with the contacts you provided.

Global retirement assets will increase by a compounded annual growth rate of 7 percent to 2018, according to a new report.

Cerulli Associates makes this prediction in “Global Markets 2014: Clarity and Consolidation in the Quest for Assets.” Now in its 13th iteration, the study examines trends in both institutional and retails markets globally.

The 523-page report reveals that the U.S., U.K and Australia remain the chief markets among 27 countries for retirement assets, the U.S. share of the pie totaling $2.1 trillion. Retirement assets fell in value during the period examined in only four markets.

“A CAGR of 7 [percent] globally to 2018 is reassuringly predictable in uncertain times,” says Ken Yap, director at Cerulli Associates. “But managers tackling the European and U.K. retirement industries should expect further political intervention into systems.”

By investment objective, the report forecasts that equities will remain the primary assets under management in 2018 (41.8 percent), down only a few percentage points from equities’ market share in recent years.

Excepting bonds (26.4 percent), no other asset class —money markets, balanced funds, alternative products or other investments — is expected to have an AUM in the double-digits in 2018.

By distribution channel, the Cerulli report reveals the U.S. market for mutual fund AUM in 2013 to be highly fragmented —some 11 markets, more than half with AUM in the low single digits. Among them: independent broker-dealers, registered investment advisors, dually registered advisors and insurance broker-dealers.

The report finds less fragmentation in Canada and Asia (7 distribution channels), Latin America (6 channels) and Europe (3 channels). By region, the U.S. also retains the lion’s share of mutual fund industry net revenue (over half the total). 

NOT FOR REPRINT

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