Worldwide assets under management in fund-of-funds and manager-of-managers strategies could more than double by 2007, according to a study published today by Cerulli Associates.
Haneen Rabie, author of the report, said multimanager assets worldwide could reach $1 trillion by 2007 from $489 billion at the end of 2001. Multimanager is one of the fastest growing areas of the asset management industry, with assets under management growing at a compound annual rate of 15% since 1999. This compares with almost flat compound annual growth in mutual fund assets over the same period.
The biggest jump in fund flows to multimanager strategies is expected to occur in Europe, where assets under management are expected to grow to $616 billion by 2007 from $161 billion now. Pension plans’ increased demand for lifecycle products and international and global equities is expected to fuel the growth.
U.S.-based assets under management in multimanager strategies are expected to reach $368 billion by 2007 from $251 billion at the end of 2001.
