The Money Management Institute (MMI), the national organization for the managed investment solution and wealth management industry, today published interim industry data via an MMI Flash Report.
“The managed investment solution industry showed strong growth in the unified managed account segment and a reversal of losses in mutual fund advisory, and rep as portfolio manager product areas,” said Christopher L. Davis, President of MMI. “The trend indicates that the UMA continues to be the solution for many investors, particularly those preparing for retirement.”
Davis also noted, “In this election year, uncertainty in the market and with the economy will likely linger until after the election. Those concerns continue to drive investors to seek professional investment advice.”
| 2Q 2008 Flash Report - Managed Investment Solutions | ||||||||||
| Sources: Money Management Institute, Dover Financial Research | ||||||||||
| 2008 | Growth Rates | |||||||||
| MAS Segments | 4Q 2007 | 1Q 2008 | 2Q 2008 | 2Q vs. 1Q | 2Q vs. 4Q | |||||
| SMA Advisory | 763.7 | 699.4 | 682.0 | -2.5% | -10.7% | |||||
| MF Advisory | 464.5 | 448.5 | 457.5 | 2.0% | -1.5% | |||||
| Rep As Portfolio Manager | 229.6 | 221.4 | 225.9 | 2.0% | -1.6% | |||||
| UMA Advisory | 39.6 | 38.1 | 43.3 | 13.6% | 9.3% | |||||
| ETF/Other Advisory | 10.1 | 11.1 | 11.1 | 0.1% | 10.0% | |||||
| Total MAS | 1507.5 | 1418.5 | 1419.8 | 0.1% | -5.8% | |||||
| Rep As Advisor | 271.2 | 267.2 | 270.4 | 1.2% | -0.3% | |||||
| Total MAS Inc. Rep As Advisory | 1778.7 | 1685.6 | 1690.2 | 0.3% | -5.0% | |||||
| Notes: 2Q 2008 asset estimate. Reflects assets associated with MMI participating sponsor firms. | ||||||||||
| Data is restated as needed to correspond with industry changes. | ||||||||||
MIS Data Highlights
- Managed Investment Solutions (MIS) market lost 5.0% from yearend 2007 to 2Q 2008
- MIS outperformed market returns for the same period (Russell 200 Value and Russell 200 Growth were down 15.3% and 10.1% for the same period)
- Mutual fund advisory and rep as portfolio manager segments have been resilient relative to the broader equity market
- The overall performance of SMA advisory programs closely follows equity market returns
- MIS market outperformed the Russell Top 200 Value (-7.1%) and slightly underperformed the Russell Top 200 Growth 1.3% in the second quarter
The Money Management Institute (MMI) is the national organization for the separately managed investment solution and wealth management industry, representing investment manager firms, sponsors of investment consulting programs and their financial advisors. MMI was formed in 1997 to serve as a forum for the separately managed account industry’s leaders to address common concerns, discuss industry issues and collaborate to better serve investors. The Institute is the leading advocate for the industry on regulatory and legislative issues. MMI’s membership comprises firms that offer comprehensive financial consulting services to individual investors, foundations, retirement plans and trusts; related professional investment management firms, and vendor firms that provide long term services to both sponsor and manager firms.
Contacts:
Hilary Fiorella,
908-655-7760
hfiorella@mminst.org
