Outlined below are highlights and key findings from Cerulli’s latest research contained in the April issue of The Cerulli Edge – US Edition. The issue, titled “Big Bucks,” examined four important areas in asset management where large amounts of cash exist or are creating an opportunity.
– 1.9 percent of mutual fund portfolios (113 funds) have more than $10 billion in assets under management. While there is safety in having a super-sized mutual fund in-house, there are important challenges that firms must address. – With $650 billion in addressable assets, 403(b) represents the second largest segment of the defined contribution market, yet due to its complexity, this market is often ignored. However, as the 403(b) environment continues to evolve, there are opportunities to seize, especially for current 401(k) providers.
– Assets in insurance general accounts grew to almost $1.6 trillion in 2005. As insurance companies look to diversify these assets, there may be an opportunity for asset managers who invest in equities and alternative investments.
– Assets in Indian mutual funds reached $74.8 billion in 2006. As distribution strengthens and mutual funds become more recognized, Cerulli believes that firms could look to this country to expand asset management expertise.