The Q3 2022 edition of MMI-Cerulli Advisory Solutions Quarterly, which provides statistics on the managed accounts industry as of September 30, 2022, is available for download.
Managed account assets declined for the third consecutive quarter, dropping 4.4% during the third quarter to close at just under $9 trillion in assets as of September 30. On the plus side, all managed account program types posted positive net flows for the quarter. Separate accounts led the way with $44.5 billion in net flows – nearly double the $26.7 billion in net flows garnered by the next-closest program type, UMAs.
The Surprising Resilience of Rep-as-Advisor Programs
This edition also looks at the resurgence in client discretionary, Rep-as-Advisor (RA) programs over the last five years. In the aftermath of the DOL offering its Conflict of Interest Rule (DOL Rule) for comment in August 2015, wirehouse B/Ds began to focus on moving clients to UMA platforms and home-office discretion. National and regional B/Ds went in a different direction, opting to embrace RA programs – which offer a fee-based experience without the advisor (and firm) assuming the risk associated with taking discretion over client assets. This has driven solid growth in the category and a reshuffling of the leaderboard of sponsor firms with the most assets in RA programs.
MMI-Cerulli Advisory Solutions Data Portal Updated
The MMI-Cerulli Advisory Solutions Data portal on Cerulli’s Lodestar platform has also been updated with Q3 2022 data. As a reminder, MMI members that contribute their advisory solutions data to Cerulli on a quarterly basis have access to this online portal. It allows users to take a deeper dive into the MMI-Cerulli dataset – with the ability to sort, filter and export the data for business planning and presentation purposes.