Investable assets to hit $80T by 2017
By National Underwriter
By Warren S. Hersch
Investable assets will total $80 trillion by 2017, according to new report.
Tiburon Strategic Advisors, Tiburon, Calif., discloses this finding in a summary of results from in the 2013 edition of Investable Assets: Investable Assets: Dominant Mutual Funds, Growing ETFs, & Everything Else.” The research explores the market for investable assets, including mutual funds, exchange-traded funds, hedge funds and a dozen other investable asset products.
The report reveals that investable assets market firms have gathered $63.1 trillions in assets under management (including $13.1 trillion by mutual fund companies), generating $162 billion in revenues. The AUM figure represents a 30% since 2004, but is down from its peak of $69.4 trillion in 2007.
More than half of U.S. households, the study adds, have money in the stock market. Consumer households have over $5.5 trillion in equities, a decrease of 40% since 2002. Consumers have invested $12.0 trillion of their investable assets & retirement plan assets in equities.
Additionally, consumer households have $1.6 trillion in corporate and foreign bond assets, an increase of 100% since 2002, but a decrease of 10% since 2007
The report observes also that 88 million consumers now own mutual funds and unit investment trusts. The total number of global mutual funds includes 8,105 U.S. mutual funds and 55,095 non-U.S. mutual funds. Mutual funds now earn $45 billion annually, up nearly 40% since 2001.
Among the report’s additional findings:
ETFs and indexing
- U.S. stock mutual funds net flows have been negative since 2007.
- U.S. stock ETF net flows have been positive since 2006, with the exception of 2009.
- The ETFs and indexing product market has gathered $5.1 trillion assets under management, including $3.0 trillion in indexed separate accounts.
- Nearly all ETFs and indexing product assets under management are in indexed separate accounts.
- There are 1,490 exchange traded funds, up from nineteen in 1997.
- Exchange traded funds have gathered $1.3 trillion in assets under management, up from $1.0 billion in 1993.
- Exchange-traded funds have net flows of $185 billion, up 500% since 2001, and above their prior peak of $177 billion in 2008.
- In aggregate, there are over 16,000 global hedge funds
- In aggregate, global hedge funds assets under management are over $3.0 trillion.
- Hedge funds have one-fifth of the assets under management of mutual funds.
- Hedge fund profits are over $40 billion, including managed futures profits, hedge fund mutual fund profits, and non-U.S. hedge fund profits
- Only 1.5% of U.S. families can invest in hedge funds
- Two-thirds of all hedge funds use equity strategies
- The number of private equity firms reached almost 620, up by almost 20 in one year.
- Private equity firms now account for a higher share of U.S. mergers and acquisitions activity than corporations, with the share of mergers & acquisitions reaching 13%.
- Mezzanine financing comprised 2.7% or $208 million of the entire venture-backed financing business.
- Private equity in the average pension fund comprises 2.5% of pension fund investments.