Mutual funds in peril, study says

Mutual fund assets will remain in decline unless regulations put them on equal footing with other investment vehicles, such as ETFs, according to a study released this week by Celent, a Boston-based research and consulting firm.
DEC 18, 2008
Mutual fund assets will remain in decline unless regulations put them on equal footing with other investment vehicles, such as ETFs, according to a study released this week by Celent, a Boston-based research and consulting firm. The firm projected that within five years, fund groups will decline from more than 7,000 to closer to 2,000. The study, which examined the impact of the global credit crisis on the wealth management industry, predicts that assets of the mass market will shift more to stable value funds, annuities, cash and bank deposits, fixed-income vehicles and ETFs. “The entire financial services sector has been mauled, causing portfolios and retirement plans to hemorrhage value while requiring investors to question such basic issues as capacity for risk and planning for their retirement,” Robert J. Ellis, senior vice president of the firm’s wealth management practice and co-author of the report, said in a statement.

Latest News

Merrill lands four advisor teams as May recruiting data shows firm's two-way churn
Merrill lands four advisor teams as May recruiting data shows firm's two-way churn

Merrill's latest hires span Colorado to Louisiana, even as industry-wide recruiting data suggests the firm is losing almost as many advisors as it gains.

Fund manager sues Kandeo, alleges $100 million FinSocial loss
Fund manager sues Kandeo, alleges $100 million FinSocial loss

The $36 million buy allegedly hid inflated books and a $50 million diversion.

Advisor gets $200,000 from Ameriprise in 'emotional distress' lawsuit
Advisor gets $200,000 from Ameriprise in 'emotional distress' lawsuit

“An award citing emotional distress is very unusual,” an industry executive said.

Workplace financial education linked to stronger financial habits, but participation remains low
Workplace financial education linked to stronger financial habits, but participation remains low

New EBRI research found workers who participated in employer financial education reported higher confidence, literacy and financial satisfaction.

The rise of the super advisor: How AI is redefining competitive advantage in wealth management
The rise of the super advisor: How AI is redefining competitive advantage in wealth management

Beyond operational excellence, the winning advisors of the future are the ones who can reach across multiple disciplines without discarding specialist skills.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income