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 2012E                    
                       
                       
      2007        Annual Growth Rates  
      Assets      1990-    2008-    
        ($Billion)   2007   2012E  
Assets Available to Manage                    
Nominal GDP   $14,074     +5.3 %   +5.5 %
All Financial Assets   56,422     7.2     5.5    
Households' Financial Assets 45,333     6.8     5.5    
Households' Discretionary Financial Assets 30,079     6.6     5.8    
Millionaires' Financial Assets   16,963     8.3     7.0    
                       
Professionally Managed Assets                  
Pension And Retirement Assets 1                  
Defined-Benefit Plans   $5,505     +7.4 %   +5.0 %
  Corporate     1,970     4.9     2.0    
  State and Local   3,152     9.1     7.5    
  Union       383     4.8     2.0    
401(k) Plans     3,047     13.5     9.5    
Union DC Plans   120     9.5     9.0    
Other Corporate Defined-Contribution Plans 393     4.8     4.5    
403(b) Plans 2   740     9.6     9.5    
457 Plans      170     13.1     9.0    
IRA Accounts 3   4,747     12.9     10.0    
Retirement Total   $14,722     10.6 %   8.0 %  
                       
Retail Assets                    
Retail Mutual Funds   $3,741     +11.3 %   +9.5 %
Exchange Traded Funds   187           NM      20.0    
Variable Annuities 4   924     23.7     8.0    
Separate Accounts   2,329     15.8     11.0    
Bank Personal Trusts   1,036     3.8     4.0    
Hedge Funds Held by Individuals 842     23.0     8.5    
Private Equity   585     12.8     10.0    
Retail Total   $9,643     13.7 %   9.3 %  
                       
Other Categories                    
Endowments   $411     +11.9 %   +10.0 %
Foundations     670     9.5     8.5    
Insurance Company Outsourcing 800     13.2     9.0    
College Savings Plans   130          NM      12.0    
Other Categories Total   $2,011     10.8 %   9.2 %
                       
Grand Total   $26,376     11.7 %   8.6 %  
                       
Assets Managed For Households Directly $18,990     9.7 %   9.3 %
Wirehouse Retail Assets in Custody 5,500     11.0     10.0    
Subadvised Assets   3,000     20.0     15.0    
                       
Memo:                      
Federal Pension Plans   $1,197     7.7 %   6.0 %
Annuities     1,075     6.1     10.0    
                       
Industry's Real Growth Rate         2.7 %   2.4 %  
                       
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, Corporate Reports, Empirical Research Partners Estimates.
                       
1 Not including federal government pension plans.                
2 31% of 403(b) assets and 1.3% of other DC plan assets are in variable annuities.
3 47% of IRA assets are in mutual funds, 2.1% are in variable annuities.  
4 Excludes variable annuities in defined-contribution retirement plans.