The open-end mutual fund, long the investment product of choice for financial advisers, will be used about 10% less by 2009, according to a new study by Cogent Research.
Products expected to see the most dramatic increases in market share include separately managed accounts and exchange-traded funds, according to the research. SMAs and ETFs will be the beneficiaries of the reduction in assets allocated to mutual funds because of their tailored asset management features and ability to allow investors to allocate across sectors and indexes.
Other findings, the Boston research firm said, include no expected market share growth for variable annuities, despite an environment favorable to their characteristics. Hedge fund use will also remain limited to a small portion of advisor portfolios. Fees based on assets under management will supply most of the income for most advisers, according to the study.
