Global fund assets have not grown over the past year, but that does not necessarily signal flat growth across all market segments, according to a new report by Cerulli Associates.
Using data from the end of June 2001, the survey found some surprises.
Cerulli estimated year-end assets under management for 2001 at $33.9 trillion, slightly higher than year-end 2000 assets of $33.8 trillion. However, a jump in usage by "nontraditional distribution systems" could signal a growth in those markets, according to the report. Defined as independent financial advisors and platforms, those nontraditional systems accounted for over 20% of total assets under management. At year-end 2000, such distribution channels handled only 13% of U.S. mutual fund assets, and just over 10% in Europe. Traditional intermediaries account for nearly half of assets, and direct sales just under a third.
Multi-manager and fund of fund products have gained considerable traction, achieving "explosive (if potentially vogue) growth rates." Multi-managed fund assets alone stood at $326.2 billion at the end of June, 2001, with fund of funds contributing another $105.1 billion.
Finally, indexing exceeded Cerullis estimates, claiming 27% of assets under management. Extrapolating those figures across the marketplace, the firm estimated that there is $9 trillion in passive management products worldwide.