Wirehouses, B-Ds generating net flows from fee accounts

LPL Financial’s reps managed $75 billion in fee-account assets, up over 400% since 2002 due to both internal growth & acquisitions.

Among the report’s additional findings:

• Active equity mutual funds have realized over $1.0 trillion of outflows since 2008.

• Fixed income mutual funds have realized over $1.0 trillion of net inflows since 2009.

• Over two-thirds of fee-based financial advisors are feeling the pressure to revise their investment management strategies.

• The mix of consumers’ holdings of mutual funds has shifted to over half bonds & money market funds.

• Long-term mutual funds & exchange traded funds dominated 2010 product net flows.

• Consumer households hold $7.7 trillion in equities, up 70% since 2002.

• Consumer households hold $4.2 trillion in bonds, up 90% since 2002.

• Separately managed accounts & commingled investment funds continue as the second largest investable asset product market with $7.9 trillion assets under management, up 25% since 2008.

• There are now 1,221 exchange-traded funds (ETFs), up from just 19 in 1997.

• Exchange traded fund assets are nearly $1.2 trillion, having reached $1.0 trillion in 2010.

• Hedge funds have $1.8 trillion assets, back above their peak and up 30% since their bottom in 2008-2009.