Separately managed accounts continue to gather steam as industry data shows sales growth far outpacing mutual funds.
Financial Research Corp. released vital statistics on the separately managed account business at a banking conference in Chicago last week. The report revealed that assets under management have grown significantly in the last five years, in spite of the grueling bear market. Total assets reached $450 billion at the end of June 2003, up from less than $300 billion at the end of 1998. "Mutual funds and variable annuities have had stagnant or even negative asset growth over the same period," observed Michael Evans, a vice president with the Boston-based financial services research firm.