MS Market Overview
Highlights in the final edition include:
- Between the close of 2007 and the end of Q1 2012, Discretionary Financial Advisor asset market share has grown from 12% to 19% while Discretionary Firm asset market share shrank from 49% to 28% during that period.
- In that same timeframe, Discretionary Financial Advisor assets more than doubled, increasing from $198 billion to $444 billion.
- In the first quarter of 2012, as reported in the early release, advisory solution assets grew to $2.5 trillion – an increase of 9%, or $212 billion, nearly double the increase during the fourth quarter of 2011.
- Total Managed Solutions net flows for the first quarter were $52 billion – a marked increase over $26 billion in the final quarter of 2011 – but net flows were down significantly from the $81 billion recorded in Q1 2011.
- In 2011, ETF net inflows, according to Morningstar, were $121 billion compared to net inflows of $56 billion for open-end mutual funds, but total long-term mutual fund assets of $7.8 trillion still outstrip ETF assets at $1.1 trillion.
- ETF Managed Portfolio strategies – an emerging segment within the overall ETF industry – grew 43% to $27 billion in the 12 months ended in September 2011, according to Morningstar, and there is a clear trend among advisors toward outsourcing these more complex strategies to ETF asset managers.
- From Q4 2011 to Q1 2012, according to Morningstar data, the major market segment growth rates were: Money Market Funds, -4%; ETFs, 14%; and Long-Term Mutual Funds, 10%.