NEW YORK – Separately managed accounts are expected to grow to 12.5 million accounts, ballooning up to $2.1 trillion in assets by 2011, said T. Neil Bathon, president of Financial Research Corp., speaking at the 2003 annual meeting of The Money Management Institute last Monday.

FRC projects that the SMA industry totaled 2.04 million accounts, and $398 billion in assets as of the end of 2002.

The figures, which are part of a study conducted by FRC in conjunction with MMI, indicate that SMA industry year-over-year net sales increased by 181% in 2002, totaling about $50 billion.

"Projected growth in total SMA industry accounts offers an unmistakable measure of likely, continuing investor demand for this investment approach," Christopher L. Davis, executive director of the MMI, said in a statement.

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