ETFs fuel managed account growth

Assets in managed accounts grew by 20.1% last year, hitting $1.49 trillion, according to the Money Management Institute.
FEB 21, 2008
By  Bloomberg
Assets in managed accounts grew by 20.1% last year, hitting $1.49 trillion, according to the Money Management Institute. Growth was led by the exchange traded fund advisory channel, with assets surging to $10.1 billion in 2007, up from $6.8 billion in 2006, MMI said. This channel was also the fastest growing managed account segment, as customer demand skyrocketed. Some 291 ETFs were launched last year, grabbing $146 billion in net flows, up 126% from 2006. Mutual fund advisory assets hit $452.7 billion at the end of the year, up 25.6% from 2006, while separately-managed accounts leapt to $763.7 billion, reflecting a year over year gain of 12.7%. However, after the Standard and Poor’s 500 index dipped by 3.3% in the fourth quarter, mutual funds and managed accounts had some small quarterly asset declines of 0.3% and 0.2%, respectively. Variable product asset growth fell behind mutual funds and ETFs. With net sales hitting $27 billion and matching 2006’s net sales figures.

Latest News

No succession plan? No worries. Just practice in place
No succession plan? No worries. Just practice in place

While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.

Research highlights growing need for personalized retirement solutions as investors age
Research highlights growing need for personalized retirement solutions as investors age

New joint research by T. Rowe Price, MIT, and Stanford University finds more diverse asset allocations among older participants.

Advisor moves: RIA Farther hails Q2 recruiting record, Raymond James nabs $300M team from Edward Jones
Advisor moves: RIA Farther hails Q2 recruiting record, Raymond James nabs $300M team from Edward Jones

With its asset pipeline bursting past $13 billion, Farther is looking to build more momentum with three new managing directors.

Insured Retirement Institute urges Labor Department to retain annuity safe harbor
Insured Retirement Institute urges Labor Department to retain annuity safe harbor

A Department of Labor proposal to scrap a regulatory provision under ERISA could create uncertainty for fiduciaries, the trade association argues.

LPL Financial sticking to its guns with retaining 90% of Commonwealth's financial advisors
LPL Financial sticking to its guns with retaining 90% of Commonwealth's financial advisors

"We continue to feel confident about our ability to capture 90%," LPL CEO Rich Steinmeier told analysts during the firm's 2nd quarter earnings call.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.