With $67 billion of assets under management, Frank Russell Co. is the leader of the $227 billion manager-of-manager industry, according to a report from Cerulli Associates. The firm’s market share grew from 23% in 2001 to 26% last year, according to the study, "The Global Multi-Manager and Mutual Fund Subadvisory Markets 2003."

While the multi-manager and subadvisory industries lost 7.6% in assets in 2002, they fared better than the investment management industry as a whole, according to the report.

Cerulli expects the global equity markets to recover in a slow and steady manner in the years ahead. However, it projects that the multi-manager and subadvisory industries to expand an estimated 10.4% a year through 2007. Combined, those two industries had $463 billion of assets under management, according to Cerulli.

In the past four years, Frank Russell’s assets under management have grown nearly 50% from $45.6 billion at the end of 1998 to $67 billion at the end of last year. Fueling that growth has been the numerous alliances the firm has formed with financial service firms throughout the world, said Craig Ueland, Russell’s chief operating officer, in a statement.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.