SEC-registered investment advisers had a combined $26.8 trillion in assets under management for the 12 months ended April 5, up 14.5% from the previous year, and their numbers increased 3.8% to 8,614 for the same period, according to the latest annual report by the Investment Adviser Association and National Regulatory Services, a compliance consulting firm.
Hedge funds are garnering more interest than mutual funds, according to the report. The number of SEC-registered investment advisers providing advice to hedge funds rose 11% to 2,111 for the year through April 5, while those specializing in hedge fund management jumped 22% to 735. In contrast, the number of advisers to mutual funds slipped to 1,471 as of April 5, from 1,489 a year earlier.
The report also pointed to further consolidation in the industry. The 359 firms that manage $10 billion or more collectively managed 83% of overall assets under management as of April 5, up from 82% the previous year.