Of the five fee-based programs that make up the managed account universe, mutual fund advisory programs experienced one of the sharpest market share hikes at 27% over the past five years, while separate accounts experienced the most pronounced drop-off at nearly 12%.
According to Cerulli, growth rates for separate account consultant programs—the largest segment of the industry—have been impacted more than other managed account segments because of the recent market volatility, which has lead to more conservative projections by Cerulli analysts compared to previous years.
These programs are expected to hold nearly $874 billion in total AUM by year-end 2012.
Growing an average above 26% a year since 2003, mutual fund advisory programs generally outpace the growth in the long-term mutual fund market and are one of the primary drivers to the overall success of managed accounts, according to Cerulli.
“We expect further growth in this important managed account segment as advisers, investors, and sponsors continue to embrace the benefits of embedded advice, built-in portfolio diversification, and asset-based fees,” says report coauthor Emily Tillman.