The State of U.S. Retail and Institutional Asset
Management 2019 PRODUCT DETAILS Recognizing Opportunity Across Client Segments Included with Purchase yy Digital copy and hardcopy in color OVERVIEW & METHODOLOGY yy Online access to eight related reports This report provides a comprehensive overview of the aggregate U.S. asset management yy Unlimited online firm-wide access landscape. It is intended for U.S. asset managers, or those seeking distribution yy Exhibits in Excel opportunities in the United States, and provides a quantitative evaluation that sizes yy Key findings the current addressable U.S. asset management landscape, covering all distribution yy Analyst support channels, client segments, and product vehicles within the retail and institutional yy Interactive Report Dashboards marketplaces—with emphasis on the interaction between these two segments. Furthermore, there are 14 chapters that take a deeper dive into a client channel or an Interactive Report Dashboards investment vehicle wrapper to provide more granular perspective than that which can Experience Cerulli’s digital analytics platform and be gleaned from the addressable U.S. asset management landscape. explore interactive data from this report 1. U.S. Asset Manager Addressable USE THIS REPORT TO Marketplace Model: Review assets, growth, and marketshare breakouts over the past 10 yy Review comprehensive market sizing and major trends evolving within the retail and years for the entire U.S. asset management institutional asset management industry marketplace. yy Understand how asset managers are responding to fee pressure across retail and 2. U.S. Market Sizing Components: Compare institutional client segments professionally managed assets, growth rates, and marketshare across 25 different yy Gain insight into how pricing trends within mutual funds and ETFs are impacting channels and 16 different vehicles. asset manager revenue yy Learn which investment vehicles are experiencing the largest growth in assets and where asset managers are considering product proliferation
QUESTIONS ANSWERED yy What is the size of the addressable market in the United States? yy Which channels are growing the most? yy How are the assets across various investment vehicles growing? yy How does the growth of assets between institutional and retail channels differ? yy What are the major products and strategy trends evolving within the retail and institutional asset management industry?
Cerulli Associates | [email protected] | www.cerulli.com Market Sizing Chapter 2
Exhibit 2.29 Ownership Marketshare of Mutual Funds, 2013–2018 Sources: Department of Labor, Judy Diamond, A.M. Best, LIMRA International, Beacon Research, Coalition for Collective Investment Trusts, Financial Planning, Eager, Davis, and Holmes, IRS Form 990s, Council on Foundations-Commonfund Study of Foundations, National Center for Education Statistics, NISA Investment Advisors, LLC, Public Plans Database, PENDAT, JP Morgan Asset Management, Individual Company Financial Statements, Investment Company Institute, Federal Retirement Thrift Investment Board, PLANSPONSOR, SPARK Institute, Candid, The Foundation Center, NACUBO- Commonfund Study of Endowments, Insured Retirement Institute, VARDS, eVestment, Strategic Insight/SIMFUND, Investment News, S&P Capital IQ MMD, Wealthmanagement.com, Investment Advisor Magazine, Financial Advisor Magazine, Phoenix Marketing International, U.S. Census Bureau, Federal Reserve, United States Office of Personnel Management, Preqin, Pensions & Investments, Investments & Wealth Institute (formerly IMCA), Morningstar Direct, Interval Fund Tracker, FDIC, Financial Planning Association® (FPA®), OCC, Barron's, Internal Revenue Service, Bureau of Labor Statistics, and the Social Security Administration and Meridian IQ Analyst Note: Includes money market funds, open-end funds, closed-end funds, and UITs.
Retail mutual fund assets Institutional mutual fund assets
100%
80% 38.6% 38.7% 39.0% 38.9% 39.2% 38.7%
60%
40% 61.4% 61.3% 61.0% 61.1% 60.8% 61.3% 20%
0% 2013 2014 2015 2016 2017 2018
• While assets within the mutual fund can vary substantially from year to year, the retail/institutional split has remained relatively constant, with, on average, 61.2% of assets allocated to retail channels and 38.8% associated with institutional ownership.
Key Implication: Interestingly, despite the presence of factors that should theoretically increase the marketshare of the retail channel (migration of assets from 401(k)s to IRAs, higher reliance on pooled investment products, etc.), the division of retail and institutional mutual fund assets remains relatively constant. One thing to note is that overall, regardless of distribution channel, assets are slowly being allocated away from mutual funds and toward alternative vehicles. For example, according to a recent Cerulli survey, advisors are currently allocating approximately 33.2% of assets toward mutual funds and anticipate reducing that allocation to 29.2% by 2021. This allocation is likely to be replaced by ETFs, which are currently associated with 15% of assets but are expected to increase to 18% in the same time period. There is a similar trend in the 401(k) space where CITs, which are more customizable than a traditional mutual fund, are gaining traction over the mutual fund. As of year-end 2018, CITs now account for 27.8% of assets, up from 26.9% in 2017 and 20.2% in 2016 and are expected to continue to attract assets as they move further downmarket to mid-sized plans.
The Cerulli Report | The State of U.S. Retail and Institutional Asset Management 2019 67 Table of Contents
Table of Contents: Expanded
Key Questions Answered ...... 19 1. What is the total size of the addressable market in the U.S. and how is it broken out by client channel? ...... 19 2. Which channels are growing the most? ...... 20 3. How is the investment vehicle landscape in the United States changing? ...... 21 4. How is investment product distribution changing in the institutional client channels? ...... 22 5. How are asset managers responding to fee pressure in retail client channels? ...... 23 6. What factors are going to impact fee negotiations with institutional clients? ...... 24
Chapter 1: Fee Pressure Across Retail and Institutional Client Channels ...... 25
Exhibit 1.01. Financial Advisors: Sentiments Regarding Select Statements About Active and Passive, 2019 ...... 27 Exhibit 1.02. U.S. Equity Blend Style Performance vs. Flows by Market Cap, 2017–2Q 2019 YTD ...... 28 Exhibit 1.03. Target-Date Managers: Differentiators in Winning Target-Date Fund Mandates, 2019 ...... 29 Exhibit 1.04. Index vs. Non-Index Long-Term Mutual Funds: Average Advisor Fees and Estimated Total Revenue, 2014–2018 . . . 30 Fee Pressure’s Impact on Revenue ...... 31 Exhibit 1.05. Index, Strategic Beta, and Non-Index ETF Asset-Weighted Advisor Fees and Estimated Total Revenue, 2014-2018 . . .31 Exhibit 1.06. Asset Managers: Mutual Fund Fee Reduction Plans by Expense Category, 2019 ...... 32 Asset Managers’ Response to Fee Pressure ...... 32 Exhibit 1.07. Asset Managers: Level of Agreement with Select Statements Related to Mutual Fund Family, 2019 ...... 33 Exhibit 1.08. Insurance Asset Managers: Estimates of Negotiated Fee Pressure by Asset Class, 2019 ...... 35
Chapter 2: Market Sizing ...... 37
ℹℹ Exhibit 2.01. U.S. Market Sizing: Total Assets Under Management, 2008–2018 ...... 39 Exhibit 2.02. U.S. Market Sizing Components by Channel, 2008–2018 ...... 40 Exhibit 2.03. U.S. Market Sizing Components by Channel Growth Rates, 2018 ...... 41 ℹℹ Exhibit 2.04. Total and Professionally Managed U.S. Assets Under Management, 2008–2018 ...... 42 Exhibit 2.05. U.S. Market Sizing Double-Counting and Non-Professionally Managed Assets, 2008–2018 ...... 43 ℹℹ Exhibit 2.06. Professionally Managed U.S. Market Sizing Components by Channel, 2008–2018 ...... 44
8 The Cerulli Report | The State of U.S. Retail and Institutional Asset Management 2019 Table of Contents
ℹℹ Exhibit 2.07. Professionally Managed U.S. Market Sizing Components by Channel Growth Rates, 2018 ...... 45 ℹℹ Exhibit 2.08. U.S. Market Sizing Components by Channel Marketshare, 2008–2018 ...... 46 ℹℹ Exhibit 2.09. U.S. Market Sizing Components by Investment Vehicle, 2008–2018 ...... 47 ℹℹ Exhibit 2.10. U.S. Market Sizing Components by Investment Vehicle Growth Rates, 2018 ...... 48 ℹℹ Exhibit 2.11. U.S. Market Sizing Components by Investment Vehicle Marketshare, 2008–2018 ...... 49 ℹℹ Exhibit 2.12. U.S. Professionally Managed Assets Distribution Matrix, 2018 ...... 50 ℹℹ Exhibit 2.13. Asset Manager Addressable Marketplace Model, 2018 ...... 51 ℹℹ Exhibit 2.14. Retail and Institutional Client Assets, 2008–2018 ...... 52 ℹℹ Exhibit 2.15. Retail and Institutional Client Assets: Growth Rates, 2018 ...... 53 ℹℹ Exhibit 2.16. Marketshare of Retail and Institutional Client Assets, 2008–2018 ...... 54 ℹℹ Exhibit 2.17. Retail Client Assets by Distribution Method, 2013–2018 ...... 55 ℹℹ Exhibit 2.18. Retail Client Assets: Growth Rates by Distribution Method, 2018 ...... 56 ℹℹ Exhibit 2.19. Marketshare of Retail Client Assets by Distribution Method, 2013–2018 ...... 57 ℹℹ Exhibit 2.20. Institutional Client Assets by Distribution Method, 2013–2018 ...... 58 ℹℹ Exhibit 2.21. Institutional Client Assets: Growth Rates by Distribution Method, 2018 ...... 59 ℹℹ Exhibit 2.22. Marketshare of Institutional Client Assets by Distribution Method, 2013–2018 ...... 60 Exhibit 2.23. Ownership of U.S. Products by Client Type, 2018 ...... 61 Exhibit 2.24 . U.S. Investment Vehicle Projections, 2019E–2024E ...... 62 Exhibit 2.25. Institutional Market Asset Projections, 2019E–2024E ...... 63 Exhibit 2.26. Projected Asset Marketshare by Channel, 2011–2022E ...... 64 Exhibit 2.27. Ownership Breakdown of Mutual Funds, 2018 ...... 65 Exhibit 2.28. Ownership of Mutual Funds, 2013–2018 ...... 66 Exhibit 2.29. Ownership Marketshare of Mutual Funds, 2013–2018 ...... 67
Chapter 3: Subadvisory ...... 68
Exhibit 3.01. Subadvised Assets by Vehicle, 2009–2018 ...... 70 Exhibit 3.02. Breakdown of Long-Term U.S. Mutual Fund Assets and Growth Rates by Advisory Structure, 2014–2018 ...... 71 Exhibit 3.03. Breakdown of Long-Term U.S. Mutual Fund Net Flows and Organic Growth Rate by Advisory Structure, 2014–2018 . .72 Exhibit 3.04. Unaffiliated Single- and Multi-Subadvisor Arrangements: Top-10 Long-Term U.S. Mutual Fund Subadvisory Sponsors by Assets and Net Flows, 2016–2018 ...... 73 Exhibit 3.05. Top-10 Long-Term U.S. Mutual Fund Unaffiliated Single Subadvisors by Assets and Net Flows, 2016–2018 ...... 74
The Cerulli Report | The State of U.S. Retail and Institutional Asset Management 2019 9 Table of Contents
Exhibit 3.06. Breakdown of Retail Variable Annuity Subaccount Assets by Structure, 2014–2018 ...... 75 Exhibit 3.07. Breakdown of Retail Variable Annuity Subaccount Net Flows by Structure, 2014–2018 ...... 76 Exhibit 3.08. Unaffiliated Variable Annuity Subadvisory and VIT Assets as a Percentage of Total Variable Annuity Assets by Asset Class, 2018 ...... 77 Exhibit 3.09. Top-10 Insurers Using Unaffiliated Subadvisors and VITs by Assets and Net Flows, 2016–2018 ...... 78 Exhibit 3.10. Breakdown of Long-Term U.S. ETF Assets and Growth Rates by Advisory Structure, 2014–2018 ...... 79 Exhibit 3.11. Breakdown of Long-Term U.S. ETF Flows by Advisory Structure, 2014–2018 ...... 80 Exhibit 3.12. Subadvisors: Subadvisory Services Provided and Level of Opportunity by Vehicle/Structure, 2019 ...... 81 Exhibit 3.13. Subadvisors vs. Insurers: Asset Classes with Greatest VA Subaccount Growth Potential Over the Next Three Years, 2019 ...... 82 Exhibit 3.14. Greatest Challenges Facing Subadvisory Sponsors Over the Next Three Years, 2019 ...... 83 Exhibit 3.15. Challenges for Subadvisors of Non-Insurance Products, 2019 ...... 84
Chapter 4: Advisor Distribution ...... 85
Exhibit 4.01. Assets by Intermediary Segment, 2013–2018 ...... 86 Exhibit 4.02 - Part 1. Description of Advisor Channels, 2018 ...... 87 Exhibit 4.02 - Part 2. Description of Advisor Channels, 2018 ...... 88 Exhibit 4.03. Overview of Advisor Channels, 2018 ...... 89 Exhibit 4.04. Advisor Headcount and Marketshare, 2008–2018 ...... 90 Exhibit 4.05. Advisor-Managed Assets and Marketshare, 2008–2018 ...... 91 Exhibit 4.06. Advisor Productivity, 2008–2018 ...... 92 Exhibit 4.07. Branch Network vs. Independent Asset Marketshare, 2008–2018 ...... 93 Exhibit 4.08. Projected Asset Marketshare, 2018–2023E ...... 94
Chapter 5: Direct Platforms ...... 95
Exhibit 5.01. Direct and Advisor Channel Characteristics, 2019 ...... 96 Exhibit 5.02. Direct Provider Assets and Growth, 2009–2018 ...... 97 Exhibit 5.03. Top Direct Firms by Assets, 2011–2018 ...... 98 Exhibit 5.04. Direct Assets by Product and Growth Rate, 2011–2018 ...... 99 Exhibit 5.05. Direct Provider Projected Assets, 2019E–2024E ...... 100 Exhibit 5.06. Online Trading Account Balance by Investable Assets, 2018 ...... 101
10 The Cerulli Report | The State of U.S. Retail and Institutional Asset Management 2019 Table of Contents
Exhibit 5.07. Features Used in Online Trading Account by Age Range, 2018 ...... 102 Exhibit 5.08. Reason for Establishing Direct Account by Age Range, 2018 ...... 103 Exhibit 5.09. Expected Deposition of Direct Account in Next Five Years by Age Range, 2018 ...... 104
Chapter 6: Defined Contribution Plans ...... 105
Exhibit 6.01. Total Defined Contribution Assets and Growth, 2011–2018 ...... 106 Exhibit 6.02. Defined Contribution Assets by Subset, 2008–2018 ...... 107 Exhibit 6.03. 401(k) Investment-Only vs. Proprietary Assets, 2018 ...... 108 Exhibit 6.04. Top-25 Defined Contribution Asset Managers by Assets, 2018 ...... 109 Exhibit 6.05. Top-15 Target-Date Managers by Assets, 2017–2018 ...... 110 Exhibit 6.06. Top-25 DC Recordkeepers by Total DC Recordkept Assets, 2018 ...... 111 Exhibit 6.07. Total Corporate Defined Contribution Net Flows by Plan Type, 2008–2018 ...... 112 Exhibit 6.08. Total Number of Corporate Defined Contribution Plans by Plan Type, 2008–2018 ...... 113 Exhibit 6.09. Total Number of Corporate Defined Contribution Participant Accounts: Active vs. Retired/Separated, 2008–2018 . . 114 Exhibit 6.10. Leading 403(b) Recordkeepers by Assets, 2018 ...... 115 Exhibit 6.11. Federal Thrift Savings Plan Net Flows, 2008–2018 ...... 116 Exhibit 6.12. Federal Thrift Savings Plan Asset Allocation, 2018 ...... 117 Exhibit 6.13. Total Collective Investment Trust Assets and Growth, 2011-2018 ...... 118 Exhibit 6.14. Top-20 Collective Investment Trust Providers, 2018 ...... 119 Exhibit 6.15. CIT Assets in DC Plans by Strategy, 2018 ...... 120 Exhibit 6.16. CIT Data Points Reported to Morningstar, 2018 vs. 2019 ...... 121
Chapter 7: High-Net-Worth Market ...... 122
Exhibit 7.01. High-Net-Worth Provider AUM by Firm Type, 2012–2017 ...... 123 Exhibit 7.02 - Part 1. Top U.S. Wealth Managers, 2Q 2018 ...... 124 Exhibit 7.02 - Part 2. Top U.S. Wealth Managers, 2Q 2018 ...... 125 Exhibit 7.02 - Part 3. Top U.S. Wealth Managers, 2Q 2018 ...... 126 Exhibit 7.03. Household Nonfinancial Assets by Investable Asset Tier, 2018E ...... 127 Exhibit 7.04. Distribution of Household Investable Assets by Type of Asset and Investable Assets, 2018E ...... 128 Exhibit 7.05. Total Accumulated Wealth Transfer (Five-Year Increments), 2017–2041E ...... 129 Exhibit 7.06. Private Banks: Total Fiduciary and Related Assets by Business Line, 2018 ...... 130
The Cerulli Report | The State of U.S. Retail and Institutional Asset Management 2019 11 Table of Contents
Exhibit 7.07. Availability and Distribution of Services Provided by All HNW Practices, 2018 ...... 131 Exhibit 7.08. Asset Managers: Most Important Investment Goals/Objectives When Targeting HNW Investors, 2018 ...... 132 Exhibit 7.09. Asset Managers vs. HNW Practices: Most Important Factors in Being Terminated by a HNW Practice, 2018 . . . . . 133 Exhibit 7.10. Asset Managers vs. HNW Practices: Most Important Factors When Conducting Due Diligence, 2018 ...... 134 Exhibit 7.11. Asset Managers: Products and Strategies in Demand Among MFOs and RIAs, 2018 ...... 135
Chapter 8: Defined Benefit Plans ...... 136
Exhibit 8.01. Total DB Plan Assets and Growth Rates, 2008–2018 ...... 137 Exhibit 8.02. DB Plan Assets by Subset, 2008–2018 ...... 138 Exhibit 8.03. Taft-Hartley Assets, 2008–2018 ...... 139 Exhibit 8.04. Average Corporate DB Plan Funded Status, 2007–2Q 2019 ...... 140 Exhibit 8.05. Asset Allocation of DB Plans, 3Q 2017 vs. 3Q 2018 ...... 141 Exhibit 8.06. Public DB Mandates Placed by Manager, 2016–1Q 2019 ...... 142 Exhibit 8.07. State and Local DB Plans’ Aggregate Funded Ratio, 2001–2018 ...... 143 Exhibit 8.08. Asset Managers’ Average Length of Client Relationship by Institutional Client Type, 2019 ...... 144 Exhibit 8.09. Asset Managers’ Anticipated DB Flows by Client Type, 2019 ...... 145
Chapter 9: Endowments & Foundations ...... 146
Exhibit 9.01. Total Endowment and Foundation Assets and Growth, 2007–2018 FYE ...... 147 Exhibit 9.02. Endowment Investment Function Outsourcing, 2010–2018 FYE ...... 148 Exhibit 9.03. Top-25 College and University Endowments, 2017–2018 FYE ...... 149 Exhibit 9.04. Endowment Asset Allocation, 2018 FYE ...... 150 Exhibit 9.05. Average Sales Cycle by Institutional Client Type, 2019 ...... 151 Exhibit 9.06. Top-25 Private Foundations, 2017 ...... 152 Exhibit 9.07. Private Foundations’ Asset Allocation, 2016–2018 ...... 153 Exhibit 9.08. Asset Managers’ Anticipated Nonprofit Net Flows, 2019 ...... 154
Chapter 10: Insurance General Accounts ...... 155
Exhibit 10.01. Insurance General Account Total Invested Assets and Projections by Insurance Business Line, 2010–2025E . . . . 156 Exhibit 10.02. Insurance General Account Asset Allocation by Major Insurance Business Line, 2011–2018 ...... 157 Exhibit 10.03. Nonaffiliated Outsourced Insurance General Account Assets and Projections, 2016–2024E ...... 158
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Exhibit 10.04. Institutional Channels by Equity Allocation, 2018 ...... 159 Exhibit 10.05 - Part 1. Anticipated Institutional Flows by Client Type, 2018 ...... 160 Exhibit 10.05 - Part 2. Anticipated Institutional Flows by Client Type, 2018 ...... 161
Chapter 11: Managed Accounts ...... 162
Exhibit 11.01. Managed Account Assets and Growth, 2008–2018 ...... 164 Exhibit 11.02. Managed Account Industry Net Cash Flow by Program Type, 2010–2018 ...... 165 Exhibit 11.03. Managed Account Assets by Discretion, 2016–2018 ...... 166 Exhibit 11.04. Top-15 Sponsors by Managed Account Assets, 2018 ...... 167 Exhibit 11.05. Wirehouse Channel Mix of Managed Account Assets by Program Type, 2008–2018 ...... 168 Exhibit 11.06. Mutual Fund and ETF Advisory Program Assets, 2007–2018 ...... 169 Exhibit 11.07. Mutual Fund Advisory Program Assets by Program Type: Packaged, Hybrid, and Open, 2004–2018 ...... 170 Exhibit 11.08. Top-15 Mutual Fund Advisory Program Sponsors by Marketshare, 2009–2018 ...... 171 Exhibit 11.09. Rep-as-Portfolio-Manager Program Assets, 2000–2018 ...... 172 Exhibit 11.10. Top-15 Unified Managed Account Program Sponsors by Marketshare, 2009–2018 ...... 173 Exhibit 11.11. Standalone Separate Account Program Assets, 2000–2018 ...... 174 Exhibit 11.12. Managed Account Assets by Vehicle, 2012 vs. 2018 ...... 175 Exhibit 11.13. Unified Managed Account Program Assets by Investment Vehicle, 2008–2018 ...... 176
Chapter 12: Individual Retirement Accounts ...... 177
Exhibit 12.01. Total IRA Assets and Growth Rate, 2007–2018 ...... 178 Exhibit 12.02. IRA Assets by Type of IRA, 2007–2018 ...... 179 Exhibit 12.03. Growth of IRA Assets by Type of IRA, 2008–2018 ...... 180 Exhibit 12.04. Percentage of IRA Assets in Traditional vs. Nontraditional Accounts, 2007–2018 ...... 181 Exhibit 12.05. Nontraditional IRA Assets: Percentage by Account Type, 2007–2018 ...... 182 Exhibit 12.06. IRA Assets by Investment Product, 2007–2018 ...... 183 Exhibit 12.07. Growth of IRA Assets by Investment Product, 2008–2018 ...... 184 Exhibit 12.08. Top-15 IRA Providers by AUA, 2017–2018 ...... 185 Exhibit 12.09. IRA Rollover Contributions from Defined Contribution Plans, 2007–2018 ...... 186
The Cerulli Report | The State of U.S. Retail and Institutional Asset Management 2019 13 Table of Contents
Chapter 13: Annuities ...... 187
Exhibit 13.01. Total Annuity Assets by Product Type, 2005–2018 ...... 188 Exhibit 13.02. Variable Annuity Total New Sales and Net Sales, 2005–2Q 2019 YTD ...... 189 Exhibit 13.03. Total Annuity Industry Sales by Distribution Channel, 2005–2018 ...... 190 Exhibit 13.04. Top-25 Retail Variable Annuity Issuers by New Sales, 2Q 2019 YTD ...... 191 Exhibit 13.05. Fixed-Indexed Annuity Sales as Percentage of Total Fixed Annuity Sales, 2005–2018 ...... 192
Chapter 14: Mutual Funds ...... 193
Exhibit 14.01. Total Mutual Fund Assets and Growth, 2008–2Q 2019 ...... 195 Exhibit 14.02. Mutual Fund Assets by Subset: Long Term, Money Market, and Closed End, 2008–2Q 2019 ...... 196 Exhibit 14.03. Mutual Fund Net Flows by Subset: Long Term and Money Market Funds, 2008–2Q 2019 YTD ...... 197 Exhibit 14.04. Number of Mutual Funds by Subset: Long Term, Money Market, and Closed End, 2008–2Q 2019 ...... 198 Exhibit 14.05. Total Open-End Mutual Fund Assets by Fund Type, 2008–2Q 2019 ...... 199 Exhibit 14.06. Total Open-End Mutual Fund Net Flows by Fund Type, 2008–2Q 2019 YTD ...... 200 Exhibit 14.07. Active and Passive Open-End Mutual Fund Assets and Flows, 2008–2Q 2019 YTD ...... 201 Exhibit 14.08. Top-35 Long-Term Open-End Mutual Fund Asset Managers, 2Q 2019 ...... 202 Exhibit 14.09. Top-35 Money Market Mutual Fund Asset Managers, 2Q 2019 ...... 203 Exhibit 14.10. Top-35 Closed-End Mutual Fund Asset Managers, 2Q 2019 ...... 204 Exhibit 14.11. Total Fund-of-Fund Assets and Net Flows, 2011–2Q 2019 YTD ...... 205
Chapter 15: Exchange-Traded Funds ...... 206
Exhibit 15.01. ETF Assets and Growth, 2008-2Q 2019 ...... 208 Exhibit 15.02. ETF Assets by Fund Type, 2014–2Q 2019 ...... 209 Exhibit 15.03. ETF Net Flows, 2008–2Q 2019 YTD ...... 210 Exhibit 15.04. ETF Issuers’ Capture of Annual Flows by Firm Size, 2014–2Q 2019 YTD ...... 211 Exhibit 15.05. ETF Net Flows by Fund Type, 2014–2Q 2019 YTD ...... 212 Exhibit 15.06. Number of Total and New ETFs, 2008–2Q 2019 YTD ...... 213 Exhibit 15.07. Top-25 ETF Sponsors, 2Q 2019 ...... 214 Exhibit 15.08. Active, Passive, Strategic Beta ETF Assets, Growth Rates, and Flows, 2008–2Q 2019 ...... 215
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Chapter 16: Alternatives ...... 216
Exhibit 16.01. Global Private Investment Assets, 2009–2Q 2018 ...... 218 Exhibit 16.02. Top-25 Global Private Equity Institutional Investors, 1Q 2019 ...... 219 Exhibit 16.03. Private Investment Structures Most Frequently Requested by Investors, 2019 ...... 220 Exhibit 16.04. Global Single-Manager and Fund-of-Hedge-Funds Assets, 2009–1Q 2019E ...... 221 Exhibit 16.05. Total Liquid Alternative Assets, 2009–1Q 2019 ...... 222 Exhibit 16.06. Top-25 Liquid Alternative Managers, 1Q 2019 ...... 223 Exhibit 16.07. Importance of Alternative Investments for Retail, High-Net-Worth, and Institutional Channels, 2019 ...... 224 Exhibit 16.08. Top-10 Interval Fund Managers, 1Q 2019 ...... 225
Glossary ...... 226
Index of Companies ...... 235
The Cerulli Report | The State of U.S. Retail and Institutional Asset Management 2019 15 Index of Companies
Index of Companies
AB...... 23, 34 Aberdeen...... 47 Acorns...... 97 AIG...... 82 Allianz...... 23, 34 Ally Bank...... 97 American Century...... 206, 208, 214 American Funds...... 110, 202, 205 AQR...... 142 Artivest...... 52, 216 Assetmark...... 171, 173 Atlantic Trust...... 130 AXA...... 187, 191, 192 Bank of America/Merrill Lynch...... 21, 47, 96, 173 Barclays...... 19, 40, 136, 138, 153 Betterment...... 102 BlackRock/iShares...... 18, 116, 119, 136, 142, 203, 204, 206, 208, 209, 211, 214 Blackstone...... 142, 223 Blue Tractor...... 62, 206, 208 BNY Mellon...... 130 Brinker...... 72, 81, 171 Brookfield Asset Management...... 142 CAIS...... 52, 216, 224 Capital Group...... 206, 208 Charles Schwab...... 26, 64, 95, 96, 98, 122, 123, 185, 211 Chase...... 167 Citigroup...... 130 Defiance Asset Management...... 213 Delaware...... 82 Deutsche...... 123 DWS...... 203 E*TRADE...... 26, 55 Eaton Vance...... 62, 204, 206, 208 Edward Jones...... 72, 81, 165, 167, 171 Envestnet...... 167, 173 Federated...... 203 Fidelity...... 18, 23, 26, 32, 55, 62-65, 72, 79, 86, 95, 98, 105, 111, 124, 171, 185, 194, 201-203, 205, 206, 208
The Cerulli Report | The State of U.S. Retail and Institutional Asset Management 2019 235 Index of Companies
First Trust...... 79 Geode...... 74 Goldman Sachs...... 76 Guggenheim...... 211 iCapital...... 216, 224 InsightShares...... 213 Invesco...... 209, 211, 214 J.P. Morgan...... 110, 124, 130, 167, 203, 206, 208, 211, 214 Jackson National...... 187, 191, 192 John Hancock...... 79 KKR...... 142 Lincoln...... 82, 92, 187, 191, 192 Lockheed Martin...... 29, 137 LPL...... 85, 92, 171, 185 Mass Mutual...... 72 Mellon Capital...... 79 Mercer...... 224 Mirae...... 214 Morgan Stanley...... 21, 47, 93, 173, 174 Morningstar...... 223 Natixis...... 62, 206, 208 Northern Trust...... 119, 130, 142 Nuveen...... 18, 204 OppenheimerFunds...... 211 Penserra...... 214 PIMCO...... 21, 49, 55, 198, 204 Precidian...... 62, 70, 206, 208 Principal...... 111 Prudential...... 76 Putnam...... 29 Raymond James...... 123 Robinhood...... 102 Salt Financial...... 23, 33, 206, 214 Scottrade...... 98 SoFi...... 206, 214 State Street...... 119, 209, 211, 214 T. Rowe Price...... 62, 74, 76, 82, 105, 205, 206, 208
236 The Cerulli Report | The State of U.S. Retail and Institutional Asset Management 2019 Index of Companies
TD Ameritrade...... 26, 55, 98 TIAA...... 63, 111, 115, 167 TPG Partners...... 142 U.S. Trust...... 130 UBS...... 93 USAA...... 98 Vanguard...... 18, 26, 64, 86, 95, 98, 105, 109, 110, 122-124, 194, 201-203, 205, 209, 211, 214 Vident...... 214 Vista Equity Partners...... 142 Wealthfront...... 99 Wellington...... 74 Wells Fargo...... 111, 185 WellsTrade...... 85, 86 Wilmington Trust...... 105, 121, 130 WisdomTree...... 68, 79
The Cerulli Report | The State of U.S. Retail and Institutional Asset Management 2019 237