Professionally managed assets climbed to $29.4 trillion in 2007, an increase of more than 12 percent, according to Cerulli Associates. It’s the fifth straight year of gains.
More traditional methodologies have placed the figure slightly above $40 trillion. But Cerulli says its marketsizing provides a more accurate picture.
The difference between the two figures is due to the removal of assets that are commonly double-counted, and the fact Cerulli only includes assets that are professionally managed, and thus are addressable to asset managers. For example, we dont include individual securities. Interestingly, the gap between the two marketsizings has been increasing over time, which suggests that retail vehicles are finding alternative distribution outlets in institutional markets, such as mutual funds in DC plans, or ETFs held by institutions, says Billy Hayes, Associate Director and co-author of this report.