Overview of the 2014-2015 MMI Industry Guide to Managed Investment Solutions – Trends and Statistics

The sixth edition of the MMI Industry Guide provides member firms with comprehensive statistics covering all segments of the advisory solutions market, proprietary forecasts of future growth, and extensive research coverage and analysis of emerging industry trends. The primary purpose of the Guide is to facilitate member firm business planning, and the full 253-page report  – as well as the individual exhibits and data series  – are available for download in the members’ area of the MMI website (www.mminst.org) for use in preparing market analyses and presentations.

What’s Inside . . .

MMI’s Comprehensive Data on the Managed Solutions Industry

  • Historical trend data for industry sales and assets collected directly from MMI members is organized by sponsor firm, platform type, investment manager, and channel
  • This data is available across a number of categories:

-   Top-line managed solutions net flows and asset growth

-   Trends across important advisory business segments and channels

-   Rankings of key managed solutions participants – sponsors, investment managers, and third-party service providers

-   Overall industry investment product and category usage for perspective

  • Absolute and relative metrics provide a detailed overview of the direction and health of the industry’s major segments 

The Evolution of Financial Advice Delivery

  • This year’s Guide includes a comprehensive look at how the process of advice delivery is changing in response to current capital market conditions and the evolving needs of clients, advisors and financial services firms.   
  • The Guide examines the complex interplay of trends by focusing on the functional aspects of advice delivery – planning, portfolios and platforms – and how each is impacted by increasing demand for goals-based approaches, customized portfolios and streamlined platforms.    
  • One aspect of the changing managed solutions landscape is that goals-based advice is being embraced by the industry, and sponsor firms are reorganizing to meet the increasing demand.

 figure 1

 MMI Member Forecast: Strong Industry Growth through 2018

  • A five-year forecast from MMI’s sponsor firm members projects a compound annual growth rate of 14 percent and a near doubling of industry assets by 2018.
  • Selected highlights of projected key industry trends and forecast growth rates for various managed solutions market segments include:
    • Advisors are consistently demanding solutions that are simple to execute and focus on client goals, particularly lifetime income. They want customization – defined as personalized for the client and tactically adaptable to market conditions.
    • With the exception of UMA programs, which are starting from a significantly smaller base, all of the major segments are forecast to exceed $1.0 trillion by 2018.
    • UMAs, which are being seen as looking more and more like Rep as Portfolio Manager programs, have a projected compound annual growth rate of 24 percent through 2018.
    • Rep as Portfolio Manager programs are poised for the greatest asset growth with assets forecast to reach $1.5 trillion by 2018.

Rep as Portfolio Manager Asset Forecast ($ billions), 2014 to 2018

figure 2  

How to Access the Industry Guide. . .

The 2014-2015 MMI Industry Guide – as well as the individual exhibits and data series – can be accessed by visiting MMI’s website at: www.mminst.org

  • Step 1:  Scroll over Publications in the header bar and click on the Industry Guide link
  • Step 2:  Click on the Member Login button next to the publication you would like to view
  • Step 2:  Enter username/e-mail address and password to access the publication*

*Or, if you do not have a login, simply click on the Get Access Here link to request one.