The Future of the Money Management Industry
We have done research on trends and the competitive landscape in the money management industry for over two decades. We periodically publish research on the topic and are continuously updating our databases.
 
The U.S. Money Management Industry:
Assets and Growth Rates
         
1990 Through 2013E                    
                       
                       
      2008        Annual Growth Rates  
      Assets      1990-    2009-    
        ($ Billion)   2008   2013E  
Assets Available to Manage                    
Nominal GDP   $14,441     +5.2 %   +5.0 %
All Financial Assets   59,606     7.1     5.3    
Households' Financial Assets 41,957     5.9     5.5    
Households' Discretionary Financial Assets 26,154     5.4     5.0    
Millionaires' Financial Assets   23,412     8.3     6.5    
                       
Professionally Managed Assets                  
Pension And Retirement Assets 1                  
Defined-Benefit Plans   $4,366     +5.6 %   +5.0 %
  Corporate     1,551     3.2     2.0    
  State and Local   2,435     7.0     7.0    
  Union       380     4.5     2.0    
401(k) Plans     2,350     11.1     9.5    
Union Defined-Contribution Plans   72     7.1     8.0    
Other Corporate Defined-Contribution Plans 383     4.5     4.5    
403(b) Plans 2   572     7.5     9.5    
457 Plans      140     11.1     9.5    
Public Defined-Contribution Plans 225     NM     10.0    
IRA Accounts 3   3,610     10.5     10.0    
Retirement Total   $11,718     8.2 %   7.9 %  
                       
Other Institutional Categories                  
Endowments   $318     +9.6 %   +8.0 %
Foundations     533     7.6     8.0    
Insurance Company Outsourcing   728     11.8     9.0    
Other Institutional Categories Total   $1,578     9.9 %   8.5 %  
                       
Retail Assets                    
Retail Mutual Funds   $3,709     +10.6 %   +9.0 %
Exchange Traded Funds   268     NM     20.0    
Variable Annuities 4   687     20.2     7.0    
Separate Accounts   1,328     11.3     11.0    
Bank Personal Trusts   796     2.1     4.0    
Hedge Funds Held by Individuals 450     17.4     9.0    
Private Equity   280     7.6     10.0    
College Savings Plans   105     NM     12.0    
Retail Total   $7,623     10.5 %   9.3 %  
                       
Grand Total   $20,918     9.1 %   8.4 %  
                       
Assets Managed For Households Directly $14,750     10.1 %   9.4 %
National Full Service Brokerage Firms Retail Assets in Custody 5,300     9.5     7.0    
                       
Memo:                      
Federal Pension Plans   $1,221     7.4 %   6.0 %
                       
Industry's Real Growth Rate         2.7 %   2.3 %  
                       
Post-Fee Return Assumptions:                  
Equities                 +7.1 %
All Money Under Management             6.1    
 
 
Source:  Federal Reserve Board, U.S. Department of Labor, Employee Benefits Research 
Institute, Cerulli Associates, Investment Company Institute, NAVA, VARDS, FDIC, Venture Economics, Hedge Fund Research, TASS Research, NACUBO, The Foundation Center, Holmes Research, College Savings Plan Network, Insurance Asset Manager Survey, Institute for Private Investors, Corporate Reports, Empirical Research Partners Analysis and Estimates.
                       
1 Not including federal government pension plans.                
2 25% of 403(b) assets and 1.3% of other DC plan assets are in variable annuities.
3 44% of IRA assets are in mutual funds, 2.1% are in variable annuities.  
4 Excludes variable annuities in defined-contribution and IRA retirement plans.