10 Facts About the Fund Industry

Line and bar graphsLast week, I have the privilege of hearing Avi Nachmany and the Strategic Insight team talk about trends in the global fund industry. Here are the numbers that made an impression on me:

  • The global fund industry is growing by $1 trillion every year.
  • Smart beta funds gained $100+ billion in net flows over the past 2-1/2 years.
  • Investors have $10+ trillion in cash that is available for investment in longer-term funds.
  • In 2014, independents and regional broker-dealers had higher sales and sales growth than national b-d’s.
  • 70% of sales by advisers are within a fee-based platform.
  • 90% of sales by advisers are in no-load shares, level-load shares or A shares at NAV.
  • More than 50% of wirehouse long-term fund assets are in share classes with no 12b-1 fee.
  • Over 100 fund families use unaffiliated subadvisers to run liquid alternative funds.
  • Subadvisers managed $2.4 trillion in fund assets in March 2015.
  • Subadvised assets account for 11% of mutual funds and 45% of variable annuity funds.

What are your favorite facts about the fund industry?

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