Managed account assets explode: Cerulli Associates
During the same period, the assets of Unified Managed Accounts (UMA), which include SMAs, mutual funds and ETFs in a single account, grew even stronger overall – 68% and nearly 80%. % over two years. Free cash flow between the second quarter of 2020 and the first quarter of 2021 was $ 66.7 billion.
According to Cerulli, one of the main drivers of asset growth in ADMs is the growing demand from advisors “to offer a greater degree of personalization to their clients.” ADMs offer advisors the opportunity to profit from the harvest of tax losses from individual assets within client portfolios and to capitalize on other investor trends, including investments focused on environmental, social and governance (ESG) factors. ).
Asset managers, in turn, are introducing more ADMs in order to stay competitive and “one of the best ways to do this is to give advisors and home offices maximum vehicle flexibility,” Cerulli says. .
The report highlights SMA launches by major asset managers over the past two years, including Fidelity Investments; Putnam Investments; American century; Aberdeen Standard; WCM Investment Management, a subsidiary of Natixis Investment Management; and Voya in partnership with Morningstar.