3Q 2011 Market Statistics

During 3Q 2011 advisory assets contracted by $177 billion or 7.5%. As a result, the managed solutions asset base shrunk from $2.3 trillion to $2.1 trillion. The decline in advisory assets was largely driven by poor equity market performance as the S&P 500 and the Russell 3000 turned negative for the quarter, returning -13.9% and -15.3%. In fact, the S&P 500 returned the worst three-month period since the start of the financial crisis in 2008.

  MMI Central - 4Q11, Early Release (1.2 MiB)
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  MMI Central 3Q11 (1.3 MiB)
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Advisory Solutions see Net New Sales of $60.3 billion
During 2Q 2011 advisory assets grew slightly by $71 billion or 3.1%. This compares to a market return of 0.1% – according to the S&P 500. The UMA market segment grew the fastest at 7.7% to reach $139 billion in assets under management. Other segments increased consistently with the overall industry. The SMA market grew 2.0%, beating the overall market growth rate.

MS Assets Reach $2.3 Trillion

During 1Q 2011 advisory assets increased $162 billion to $2.3 trillion representing a quarterly growth rate of 7.6%. In comparison, the S&P 500 was up 5.9% for the quarter and the Russell 3000 returned 6.4% for the same period. UMA advisory and rep as portfolio manager programs had the highest growth rates. UMA assets were up 10.8% (when adjusted for restatements) to $128 billion and RPM assets increased by 11.8% driving assets to exceed the $400 billion mark.

  MMI Central 2Q11 Final Release.pdf (1.3 MiB)
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  MMI Central 2Q11 - Early Release (1.1 MiB)
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During 1Q 2011 advisory assets increased $162 billion to $2.3 trillion representing a quarterly growth rate of 7.6%. In comparison, the S&P 500 was up 5.9% for the quarter and the Russell 3000 returned 6.4% for the same period. Market indices are simply used as relative benchmarks against which to compare industry growth rates. According to reported sales figures, the advisory industry took in $81 billion in net new sales which represents 50% of the growth for the quarter. See Exhibit 6 within PDF. Rep as portfolio manager and mutual fund advisory programs saw the most significant inflows with $24.5 and $20.9 billion respectively.

MMI Central Year End 2010 Issue Available

2010 saw Advisory Solutions assets under management top two trillion dollars, finishing the year that began with AUM of $1.8T.  Assets grew at more than 26% beating the S&P 500 which grew at just over 15%.  A stronger economic climate and government initiatives helped US equities beat broader international indices.

The fourth quarter growth in Advisory Solutions of 9.3% was fueled by UMA and the rep-driven programs Rep as Advisor and Rep as Portfolio Manager.  MMI Central 2010 Year End Early Edition is available by clicking below. A final version will be available soon.

  MMI Central 1Q 2011 (462.5 KiB)
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This is the second issue of Central – Early Release. The purpose of the early release is to help MMI member firms more quickly assess industry trends. Central – Early Release includes sponsor-related exhibits and an abbreviated overview of the industry. In addition, estimates have been made for firms that were unable to meet the quarterly data deadline. A final Central will be issued which will include updated statistics.

  MMI_Central_4Q10_EarlyFINAL.pdf (1.2 MiB)
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The U.S. equity market suffered a significant decline, as the S&P 500 Index fell 11.4% for the second quarter 2010,breaking a string of four consecutive positive return quarters. For the trailing one-year period, the S&P 500 was up 14% and small cap stocks, as measured by the Russell 2000 Index, were up more than 21%. There was little difference between growth and value for the quarter. The Russell 3000 Value Index declined 11.1% versus an 11.6% decline for the Russell 3000 Growth Index. In the second quarter, large cap stocks suffered the greatest declines.

  MMI Central 3Q 2010 (1.3 MiB)
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Beginning with the third quarter 2010, the Money Management Institute (MMI) will distribute preliminary quarterly results. The purpose of the early release is to help member firms more quickly assess industry trends. Central – Early Release will include sponsor-related exhibits and an abbreviated overview of the industry. In addition, estimates will be made for the few firms unable to meet the quarterly data deadline. A final Central will be released later in the quarter which will include updated statistics.

  MMI Central 3Q 2010 Early Release (1.1 MiB)
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MS asset levels have fully rebounded to pre-crisis asset levels. The MS industry now stands at $1.8 trillion in AUM, the highest level since MMI began tracking assets in 2006. However, as mentioned in the previous issue of Central the composition of the industry has changed considerably.  Members can review the full report below.

  MMI Central 2Q 2010 (1.3 MiB)
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