Investors: The Asset Manager's Forgotten Friend

Posted by Rubesh Jacobs on Tue, Feb 21, 2017


It’s no secret that organic growth in the mutual fund industry will be driven by retail investors—that is, households. According to the Investment Company Institute (ICI) 2016 Fact Book, of the $16 trillion in U.S. mutual fund assets, 89% sits in household investments such as individual retirement accounts, defined contribution retirement plans, variable annuities, 529 plans and Coverdell Education Savings Accounts. And according to a 2015 Oliver Wyman report, financial advisors exert a dominant influence over retail assets: an estimated 58% of households with less than $100,000 in investable assets and more than 75% of non-retired households with more than $100,000. But advisors themselves are seeing their businesses shaped significantly by the demands of their customers: the retail investors.


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