Assets in managed accounts increased 12.8% in the fourth quarter, according to the business chief industry group.
The Money Management Institute said that managed account assets totaled $415.5 billion industry-wide at the close of last years fourth quarter, up from $368.3 billion at the end of the third quarter.
The industry group said that the uptick demonstrates that investors are still attracted to managed accounts, even in volatile markets.
But the year-to-year numbers show that managed account assets declined by nearly $2 billion, or 0.5%, between 2001 and 2000 when the industry ended the year with $417.3 billion in assets. The MMI said it isnt alarmed by the decline because, in comparison, mutual fund assets posted far more dramatic declines of 8.1% over the year.
The organizations numbers are based on a survey of the industrys top five managed account providers, Merrill Lynch, Morgan Stanley Dean Witter, UBS PaineWebber, Prudential and Solomon Smith Barney which collectively control 70% of all managed account assets, as well as data from smaller firms.