Products & Services Research Report Series. Investable Assets: Mutual Funds Still Dominating the Business

Transcription

1 Products & Services Research Report Series Investable Assets: Mutual Funds Still Dominating the Business April 2011

2 TABLE OF CONTENTS INTRODUCTION, KEY FINDINGS, & EXECUTIVE SUMMARY...24 EVOLUTION OF THE INVESTABLE ASSETS MARKET...94 Market History...94 Early Phase...94 Middle Phase...94 Recent Phase...94 Market Definition...94 Cash Investments...94 Individual Securities & Capital Markets...94 Mutual Funds...94 Fee-Accounts...94 ETFs & Indexing...94 Hedge Funds...94 Venture Capital & Private Equity...94 Real Estate...95 Wine Investments...95 Other Financial Alternative Investments...95 Other Non-Financial Alternative Investments...95 Market Growth...95 Firms...95 Employees...95 Clients...95 Assets Under Management...96 Revenues...96 Net Profits...96 Leading Financial Product Firms...96 Employees...96 Clients...96 Assets Under Management...96 Revenues...96 Net Profits...96 MARKET SEGMENTATION...97 Cash Investments & Bank Savings Products...97 Evolution of Cash Investments & Bank Savings Products...97 Market History...97 Early Phase...97 Innovation Phase...97 Restructuring Phase...97 Market Definition...97 Cash Investments...98 Bank Savings Products...98 Market Growth...98 Firms...98 Accounts...98 Assets Under Management...98 Net Flows...98 Revenues Investable Assets 2

3 Net Profits...99 Leading Cash Investments & Bank Savings Products Companies...99 Accounts...99 Assets Under Management...99 Net Flows...99 Revenues...99 Net Profits...99 Market Segmentation...99 Cash Investments Bank Savings Products Markets & Distribution Channels Direct Distribution Online Financial Services Financial Advisor Markets Retail Banks Full-Service Brokerage Fee-Based Financial Advisors Other Financial Advisors Life Insurance Companies & Agencies CPA Firms Property & Casualty Insurance Agents Mortgage Brokers Upscale Channels Private Banks Money Managers Investment Banks Sports Agents & Entertainment Managers Other Boutique & Upscale Firms Institutional Markets Defined Contribution Plans Defined Benefit Plans Endowments & Foundations Corporate Cash & Treasury Services Sovereign Wealth Funds & Other Foreign Investors International Markets English Speaking Countries Markets Europe, Middle East, & Africa Markets Asia Pacific Markets Latin America Markets Offshore Markets Future Predictions for Cash Investments & Bank Savings Products Slow Decline of Money Market Funds & Shift Back to Bank Savings Products..104 Continued Evolving Product Structure Shifts Increasing Importance of Direct Distribution & Institutional Channels Individual Securities & Capital Markets Evolution of the Individual Securities & Capital Markets Industry Market History Early Phase Middle Phase Recent Phase Market Definition Investable Assets 3

4 Securities Exchanges Specialists Market Makers Electronic Communication Networks (ECNs) Technology & Data Service Providers Market Growth Firms Revenues Net Profits Leading Individual Securities & Capital Markets Firms Revenues Net Profits Market Segmentation Securities Exchanges Specialists Market Makers Electronic Communication Networks (ECNs) Technology & Data Service Providers Markets & Distribution Channels Direct Distribution Financial Advisor Markets Institutional Markets International Markets Future Predictions for Individual Securities & Capital Markets Impact of Switch to T+1 Settlement Impact of the Switch to Decimalization Emergence of After-Hours Electronic Trading Directed Brokerage & Soft Dollar Practices Under Attack Leveraging Portfolios through Securities Lending Technology Leading to Cost Reductions in Trade Execution Mutual Funds Evolution of the Mutual Funds Business Key Driving Factors Market History Formation Phase Early Expansion Phase More Rapid Expansion Phase Scandals & Commoditization Phase Market Definition Open-End Mutual Funds Closed-End Mutual Funds Unit Investment Trusts Exchange Traded Funds Market Growth Companies Partners Employees Consumers (Investors) Consumer Households Accounts Assets Under Management Investable Assets 4

5 Net Flows Revenues Net Profits Leading Mutual Fund Companies Mutual Funds Assets Under Management Net Flows Revenues Net Profits Market Segmentation Open-End Mutual Funds Key Issues Decreasing Investment Minimums Decreasing Fees Brokerage Firms Shift from Money Market Funds Decreasing Redemption Rates Increasing Compliance Increasing Technology Innovations Mutual Fund Mergers & Acquisitions Evolving Independent Board Member Roles Closed-End Mutual Funds Unit Investment Trusts Non-US Mutual Funds Sub-Market Segmentation Investment Style Stocks, Bonds, & Money Market Funds Growth & Value Various Fixed Income International Funds Target Date Funds Index Funds Leveraged Funds Inverse Funds Hedge Fund Strategies Sector Funds Real Estate Funds Commodity Funds Currency Funds Focused Mutual Funds Socially Responsible Funds Tax Efficient Funds Product Structures Closed-End Funds Unit Investment Trusts Share Classes Mutual Funds-of-Funds Mutual Funds Wrap Accounts Unified Managed Accounts Performance Fee Mutual Funds Sub-Advised Funds Markets & Distribution Channels Investable Assets 5

6 Direct Distribution Direct to Consumer Discount Brokers & Mutual Fund Supermarkets Discount Brokers Mutual Fund Supermarkets Financial Advisor Markets Commission Mutual Fund Sales Mutual Fund Wrap Account Programs Fee-Based Financial Advisors Independent Reps Turnkey Asset Management Programs Retail Banks Insurance Agents CPA Firms Institutional Markets k Plans b Plans Plans Sub-Advisory Opportunities International Markets English Speaking Countries Europe, Middle East, & Africa Countries Asia Pacific Countries Latin America Countries Offshore Countries Future Predictions for Mutual Funds Increased Compliance Mutual Fund Scandals Moderate Industry Growth Interesting Investment Style Shifts Slower than Expected Exit from Equity Mutual Funds Exit from Money Market Funds Increased International Focus Evolving Investment Styles Increased Utilization of Target Date Mutual Funds Increased Utilization of Index Funds Introduction to Leveraged Index Funds Introduction to Inverse Index Funds Increased Utilization of Mutual Funds with Hedge Fund Strategies Emergence of Sector Mutual Funds Introduction of Real Estate Mutual Funds Emergence of Commodity Funds Emergence of Currency Funds Emergence of Socially Responsible Investing Mutual Funds Increased Utilization of Tax Efficient Mutual Funds Evolving Product Structures Expansion of Share Classes Increased Utilization of Closed-End Funds Increased Utilization of Funds-of-Funds Increased Utilization of Mutual Fund Wrap Account Programs Increased Exposure of Unified Managed Account Programs Investable Assets 6

7 Growing Popularity of Performance Fees Evolving Markets & Distribution Channels Increasing Importance of Distribution Networks Opportunities in the International Market Evolving Wholesaler Models Brand Building Intellectual Wholesaling Increased Telephone & Virtual Wholesaling Strategies Distancing of the Leaders Bifurcation of the Industry Increased Focus on Value Consolidation of Mutual Fund Companies Large Company Market Mid-Size Company Market Small Company Market Mutual Fund Company Initial Public Offerings Fee-Accounts Evolution of the Separately Managed Accounts & Other Packaged Fee-Account Programs Business Key Driving Factors Fees Versus Commissions Fiduciary Responsibility Market History Commissions Dominate Retail Business Introduction But Slow Growth Explosive Growth in Fee-Accounts Recasting of Fee-Accounts Market Definition Proprietary Fee-Account Programs TAMPs Fee-Based Financial Advisors Bank Trust Departments Separate Account Managers Market Growth Packaged Fee-Account Sponsors Packaged Fee-Account Programs Packaged Fee-Account Clients Packaged Fee-Accounts Accounts Packaged Fee-Account Net Flows Packaged Fee-Account Revenues Packaged Fee-Account Net Profits Leading Fee-Account Program Sponsors (Proprietary & TAMPs) Packaged Fee-Account Clients Packaged Fee-Accounts Packaged Fee-Account Assets Under Management Packaged Fee-Account Net Flows Packaged Fee-Account Revenues Packaged Fee-Account Profits Market Segmentation Proprietary Fee-Account Programs Turnkey Asset Management Programs Investable Assets 7

8 Widespread Market Consolidation Explosive Assets Growth Intense Market Concentration Products Usage (Mutual Funds & Separately Managed Accounts) Product Segmentation Separately Managed Accounts Market Growth Leading Separately Managed Account Program Sponsors Multiple Style Portfolios Market Growth Leading Multiple Style Portfolio Program Sponsors Mutual Fund Wrap Accounts Market Growth Leading Mutual Fund Wrap Account Program Sponsors Annuity Wrap Accounts Market Growth Leading Annuity Wrap Account Program Sponsors ETF Wrap Accounts Market Growth Leading ETF Wrap Account Program Sponsors Unified Managed Accounts Market Growth Leading Unified Managed Account Program Sponsors Broker Wrap Accounts Market Growth Leading Broker Wrap Account Program Sponsors Fee-Based Brokerage Accounts Market Growth Leading Fee-Based Brokerage Account Program Sponsors Markets & Distribution Channels Wirehouses Other Financial Advisor Channels Independent Broker/Dealers Market Background Fees Orientation TAMP Usage TAMP Feedback Fee-Based Financial Advisors Market Background Fees Orientation TAMP Usage National, Regional, & Community Banks Market Background Increasing Importance of Fee-Accounts Challenges in Building Fee-Account Programs TAMP Usage Insurance Companies Market Background TAMP Usage CPA & Law Firms Market Background Investable Assets 8

9 TAMP Usage Other Financial Advisors Upscale Channels Direct Distribution Increasing Advice Offers TAMP Usage Institutional Markets Defined Contribution Plans Defined Benefit Plans Endowments & Foundations Corporate Cash & Treasury Management Sovereign Wealth Funds & Other Foreign Investors International Markets English Speaking Countries Markets Europe, Middle East, & Africa Markets Asia Pacific Markets Latin America Markets Offshore Markets Future Predictions for the Separately Managed Accounts & Other Packaged Fee- Account Programs Business Substantial Expected Growth for Both the Packaged Fee-Accounts & Broader Fee-Accounts Markets Packaged Fee-Accounts Growth Projections Broader Fee-Account Growth Projections Growth in Six of the Eight Types of Fee-Account Programs Separately Managed Accounts Multiple Style Portfolios Mutual Fund Wrap Accounts ETF Wrap Accounts Annuity Wrap Accounts Unified Managed Accounts Broker Wrap Accounts Fee-Based Brokerage Accounts Emerging Distribution Opportunities Wirehouses Regional Broker/Dealers Independent Advisor Markets Banks Discount Brokerage Firms Other Financial Advisors Upscale Channels Expected Process Improvements Front-End Technology Middle-Office Technology Back-End Technology Client Profiling, Asset Allocation, & Proposal Generation Investment Vehicle & Manager Selection Ongoing Monitoring, Rebalancing, Performance Reporting, Billing, & Reallocation Training, Payouts, Operations & Client Support, Technology, & Compliance Issues Investable Assets 9

10 Potentially New Pricing Models ETFs & Indexing Evolution of the ETFs & Indexing Industry Key Driving Factors Focus on Modern Portfolio Theory & Asset Allocation Actively Managed Mutual Funds Difficulty in Beating Returns Lower Expense Ratios Less Turnover & More Tax Efficiency The Volatile Stock Market Stock Analysts & Mutual Funds Scandals Market History Indexed Separate Accounts Emergence Phase Index Mutual Funds Emergence Phase Indexing Growth & Product Innovation Phase Exchange Traded Funds Emergence Phase Market Definition Exchange Traded Funds Index Mutual Funds Indexed Separate Accounts Market Growth Number of Companies Number of Products Assets Under Management Net Flows Revenues Net Profits Leading Market-Linked Product Companies Number of Products Assets Under Management Net Flows Revenues Net Profits Market Segmentation Exchange Traded Funds Market Definition Passive Active Market Growth Number of Companies Number of Products Assets Under Management Net Flows Revenues Net Profits Leading Exchange Traded Fund Companies Number of Products Assets Under Management Net Flows Revenues Net Profits Index Mutual Funds Investable Assets 10

11 Market Definition Index Leverage Diverse Market Growth Number of Companies Number of Products Assets Under Management Net Flows Revenues Net Profits Leading Index Mutual Fund Companies Number of Products Assets Under Management Net Flows Revenues Net Profits Indexed Separate Accounts Market Definition Index Custom Market Growth Number of Companies Assets Under Management Net Flows Revenues Net Profits Leading Indexed Separate Accounts Managers Assets Under Management Net Flows Revenues Net Profits Markets & Distribution Channels Direct Distribution Online Tools & Advice Online Brokerage Online Banking & Mortgages Online Insurance Financial Advisor Markets Retail Banks Full-Service Brokerage Firms Independent Advisors Other Types of Financial Advisors Upscale Channels Institutional Markets Defined Contribution Plans Defined Benefit Plans Endowments & Foundations Other Markets Fee-Accounts & TAMP Programs International Markets Investable Assets 11

12 English Speaking Countries Markets Europe, Middle East, & Africa Markets Asia Pacific Markets Latin America Markets Offshore Markets Future Predictions for the Market-Linked Products Business Accelerated Growth in Market-Linked Products Market Expansion Product Innovations Continued Dominance of Leading Players & Markets Defense of Three Disadvantages Expansion of Investment Styles & Recent Innovations Investment Styles Recent Innovations Expansion of Five Utilization Strategies Continued Expansion of Exchange Traded Funds Market Expansion Product Innovations Continued Dominance of Leading Players Growth in Index Mutual Funds Market Expansion Four Product Innovations Continued Dominance of Leading Players & Markets Increased Product Innovation in Indexed Separate Accounts Market Expansion Five Product Innovations Continued Dominance of Leading Players & Markets Hedge Funds Evolution of the Hedge Funds Business Market History Emergence Phase Strategy Diversification Phase High Returns & Initial Collapses Phase Risk Management & Continued Collapses Phase Market Definition US Hedge Funds Managed Futures Funds Hedge Fund Mutual Funds Non-US Hedge Funds Global Hedge Funds Market Growth Hedge Fund Managers Hedge Fund Clients Hedge Fund Accounts Hedge Fund Assets Under Management Hedge Fund Net Flows Hedge Fund Revenues Hedge Fund Net Profits Leading Hedge Fund Companies Hedge Fund Firms Hedge Fund Partners Investable Assets 12

13 Hedge Fund Employees Hedge Fund Accounts Hedge Fund Assets Under Management Hedge Fund Net Flows Hedge Fund Revenue Hedge Fund Net Profits Product Structures Segmentation US Hedge Funds Managed Futures Funds Hedge Funds-of-Funds Hedge Fund Mutual Funds Non-US Hedge Funds Investment Strategies Segmentation Equity Strategies Arbitrage or Relative Value Strategies Event Driven Strategies Global Macro Strategies Multi-Strategy Funds Markets & Distribution Channels Direct Distribution Financial Advisor Markets Institutional Markets International Markets Future Predictions for the Hedge Funds Business Steady Market Growth & Disproportional Market Impacts Steady Market Growth Disproportional Market Impacts Continual Casualties & Increased Regulation Retailization of Hedge Fund Products Hedge Funds-of-Funds Hedge Fund Index Funds Registered Hedge Funds Hedge Funds in Variable Life Wrappers Opportunities in Defined Benefit & Defined Contribution Plans Institutionalization & Consolidation of the Hedge Funds Business Venture Capital & Private Equity Evolution of the Venture Capital & Private Equity Businesses Market History Private Equity Hey Day Phase Venture Capital Prominence Phase Private Equity Renewal Phase Market Definition Venture Capital Private Equity Mezzanine Finance Market Growth Venture Capital & Private Equity Firms Venture Capital & Private Equity Funds Venture Capital & Private Equity Fund Flows Venture Capital & Private Equity Fund Assets Under Management Venture Capital & Private Equity Fund Commitments Investable Assets 13

14 Venture Capital & Private Equity Fund Commitments Key Issues Volatile Initial Public Offering Market Investment Product Polarization Emergence of Indices Emergence of Secondary Market Fees Vary Due Diligence & Manager Selection Liquidity Problems Retailization Larger Funds Internal Rate of Return New Firms Enter Industry Management Strategy Funds-of-Funds Contract Negotiation Performance Reporting Diversification Requirements Leading Venture Capital & Private Equity Firms Venture Capital & Private Equity Funds Venture Capital & Private Equity Fund Net Flows Venture Capital & Private Equity Fund Assets Under Management Venture Capital & Private Equity Fund Commitments Venture Capital & Private Equity Fund Commitments Market Segmentation Venture Capital Market Growth Venture Capital Firms Venture Capital Funds Venture Capital Fund Net Flows Venture Capital Fund Assets Under Management Venture Capital Fund Commitments Venture Capital Fund Commitments Key Issues Entrance of Corporate, State, & University Venture Programs Emergence of High Net Worth Individual Investors Angels & Incubators Angel Investors Online Venture Capital Fund Bifurcation Focus on Late Stage Investments Betrayal of Entrepreneurs Changing Industry Focus Changing Geographical Focus Entering & Exiting Firms Other Specialized Firms Funds Solicitation Internal Rate of Return Mid-Market Deals Firm Roles Leading Venture Capital Firms Investable Assets 14

15 Venture Capital Funds Venture Capital Net Flows Venture Capital Assets Under Management Venture Capital Commitments Venture Capital Commitments Private Equity Market Growth Private Equity Firms Private Equity Funds Private Equity Fund Net Flows Private Equity Fund Assets Under Management Private Equity Fund Commitments Private Equity Fund Commitments Key Issues Huge Funds Raised Technology & Financial Services Investing Focus Mergers & Acquisitions Internal Rate of Return Diversification Tax Benefits Foreign Institutions Time Turnover Partner Investments Track Record General Partner Workload Portfolio Experience Redemption Investment Requirements Evolving Investments Liquidity Private Equity Firms Offer Venture Capital Funds Secondary Funds Investment Process Geography Big Players Enter Market Fund Structure Market Confidence Leading Private Equity Firms Private Equity Funds Private Equity Fund Net Flows Private Equity Fund Assets Under Management Private Equity Fund Commitments Private Equity Fund Commitments Mezzanine Finance Market Growth Mezzanine Finance Firms Mezzanine Finance Funds Mezzanine Finance Fund Net Flows Mezzanine Finance Fund Assets Under Management Investable Assets 15

16 Mezzanine Finance Fund Commitments Mezzanine Finance Fund Commitments Key Issues Pressure to Invest Venture-Backed Financing Fund Structure Corporations Repayment Fund Attractiveness Bifurcation Leading Mezzanine Finance Firms Mezzanine Finance Funds Mezzanine Finance Fund Net Flows Mezzanine Finance Fund Assets Under Management Mezzanine Finance Fund Commitments Mezzanine Finance Fund Commitments Markets & Distribution Channels Direct Distribution Financial Advisor Markets Institutional Markets International Markets Future Predictions for the Venture Capital & Private Equity Industry Impressive Industry Growth Evolving Markets & Distribution Channels New Fund Structures Rise of Compliance Issues Evolving Investments Early Signs of Bifurcation Real Estate Evolution of the Real Estate Investment Business Market History Early Phase Middle Phase Recent Phase Market Definition Pooled Partnerships REITs Mortgage Backed Securities Direct Mutual Funds Market Growth Funds Assets Under Management Revenues Net Profits Key Issues Leading Real Estate Investment Product Companies Funds Assets Under Management Revenues Net Profits Investable Assets 16

17 Market Segmentation Pooled Partnerships REITs Mortgage Backed Securities Direct Mutual Funds Product Segmentation Traditional Real Estate Timberland Farmland Energy Property Investments Markets & Distribution Channels Direct Distribution Online Tools & Advice Online Banking & Mortgages Online Brokerage Online Insurance Financial Advisor Markets Retail Banks Full-Service Brokerage Firms Discount Brokerage Firms Independent Reps Fee-Based Financial Advisors Other Financial Advisors Upscale Channels Institutional Markets Defined Contribution Plans Defined Benefit Plans Endowments & Foundations Corporate Cash & Treasury Services Sovereign Wealth Funds & Other Foreign Investors International Markets English Speaking Countries Markets Europe, Middle East, & Africa Markets Asia Pacific Markets Latin America Markets Offshore Markets Future Predictions for Real Estate Stagnant Growth in the Real Estate Investments Business Slowed Growth in All Types of Real Estate Investments Emerging Market Opportunities Wine Investments Evolution of the Wine Industry Market History Early Development Phase Phylloxera Phase US Prohibition & World War II Phase Maturation Phase Business & Consolidation Phase Market Definition California Wineries Investable Assets 17

18 Other US & Canada Wineries France, Italy, & Other Europe Wineries Other New World Wineries Market Growth Growers Wineries Acres Cases Produced Revenues Net Profits Leading Wineries Acres Cases Produced Revenues Net Profits Grape Varietals Segmentation Red Grape Varietals Barbera Cabernet Franc Cabernet Sauvignon Carignan Charbono Gamay Grenache Malbec Merlot Mourvedre Nebbiolo Petit Verdot Petit Syrah Pinotage Pinot Noir Syrah Sangiovese Tempranillo Zinfandel White Grape Varietals Albarino Chardonnay Chennin Blanc Gewurtzaminer Gruner Veltliner Malvasia Blanco Marsanne Muller-Tyurga Muscat Muscadet Pinot Blanc Pinot Gris (Pinot Grigio) Riesling Rousanne Investable Assets 18

19 Sauvignon Blanc Semillon Viognier Market Segmentation California Wineries Market Definition Market Growth Wineries Acres Cases Produced Revenues Net Profits Leading California Wineries Acres Cases Produced Revenues Net Profits Market Segmentation Napa Valley Sonoma Valley Mendocino & Lake Counties Livermore Valley & Central Valley Sierra Foothills Marin County Santa Clara & the Santa Cruz Mountains San Luis Obispo County Southern California Other US & Canada Wineries Market Definition Market Growth Wineries Acres Cases Produced Revenues Net Profits Leading Other US & Canadian Wineries Acres Cases Produced Revenues Net Profits Market Segmentation Oregon Washington New York Canada Everything Else France, Italy, & Other European Wineries Market Definition Market Growth Wineries Acres Investable Assets 19

20 Cases Produced Revenues Net Profits Leading France, Italy, & Other European Wineries Acres Cases Produced Revenues Net Profits Market Segmentation France Italy Germany Spain Portugal Austria Netherlands United Kingdom Other New World Wineries Market Definition Market Growth Wineries Acres Cases Produced Revenues Net Profits Leading Other New World Wineries Acres Cases Produced Revenues Net Profits Market Segmentation Australia New Zealand South Africa South America Markets & Distribution Channels United States Rest of the World Future Predictions for the Wine Industry Emergence of Sauvignon Blanc & Pinot Noir Renewed Growth of High-End Wines Emergence of New World Wineries Streamlining of Distribution Production Careers Distribution Careers Retail Careers Rationalizing of the Industry & Industry Consolidation Opportunities for Investing in the Wine Industry Collections Futures Vineyards Investable Assets 20

21 Other Financial Alternative Investments Evolution of Other Financial Alternative Investments Investment Product Polarization Market History Early Phase Middle Phase Recent Phase Market Definition Old-Line Limited Partnerships Stock Market & Individual Stock Options Folios Structured Debt Treasury Inflation Protection Securities (TIPS) Bank Loan Funds Catastrophe Bonds Stable Value & Principal Protected Funds Structured Settlements Commodity & Financial Futures Market Growth Leading Firms Market Segmentation Old-Line Limited Partnerships Stock Market & Individual Stock Options Folios Structured Debt Treasury Inflation Protection Securities (TIPS) Bank Loan Funds Catastrophe Bonds Stable Value & Principal Protected Funds Structured Settlements Commodity & Financial Futures Markets & Distribution Channels Direct Distribution Financial Advisor Markets Institutional Markets International Markets Future Predictions for Other Financial Alternative Investments Other Financial Alternative Investments Will Grow in Popularity Other Non-Financial Alternative Investments Evolution of Other Non-Financial Alternative Investments Investment Product Polarization Market History Early Phase Middle Phase Recent Phase Market Definition Commodities Fine Art, Antiques, & Collectibles Jewelry & Watches Coins & Stamps Antique & Racing Cars Investable Assets 21

22 Baseball Cards, Comic Books, & Beer Cans Sports Teams Market Growth Leading Firms Market Segmentation Commodities Fine Art, Antiques, & Collectibles Wine Investments Jewelry & Watches Coins & Stamps Antique & Racing Cars Baseball Cards, Comic Books, & Beer Cans Sports Teams Markets & Distribution Channels Direct Distribution Online Tools & Advice Online Banking & Mortgages Online Brokerage Online Insurance Financial Advisor Markets Retail Banks Full-Service Brokerage Firms Discount Brokerage Firms Independent Reps Fee-Based Financial Advisors Other Financial Advisors Upscale Channels Institutional Markets Defined Contribution Plans Defined Benefit Plans Endowments & Foundations Corporate Cash & Treasury Services Sovereign Wealth Funds & Other Foreign Investors International Markets English Speaking Countries Markets Europe, Middle East, & Africa Markets Asia Pacific Markets Latin America Markets Offshore Markets Future Predictions for Other Non-Financial Alternative Investments Other Non-Financial Alternative Investments Will Grow in Popularity FUTURE PREDICTIONS FOR THE INVESTABLE ASSETS MARKET Mutual Funds to Still Dominate Assets Under Management Accelerated Growth in Market-Linked Products, Especially in Exchange-Traded Funds251 Increased Usage in Fee-Accounts & Wealth Management Services APPENDIX Profiles of Financial Product Firms Profiles of Financial Product Firm Service Providers Investable Assets 22

23 Duplication or distribution of this report, and/or the data in this report, is strictly prohibited without the written consent of Investable Assets 23