Strong advisor demand for tactical strategies and global all-asset solutions was the key driver of asset growth in 2012.
ETF managed portfolios tracked by Morningstar grew by 60% in 2012, as detailed in the updated Morningstar ETF Managed Portfolios Landscape Report issued today. Morningstar currently tracks 530 strategies from 125 firms with collective assets of $63 billion. The continued strong asset growth in this space is indicative of the demand for ETF-based investment strategies both as stand-alone investment options and as complete portfolio solutions.
As detailed in the full report, global all-asset strategies command a strong 35% of industry assets. That said, an uptick in demand for U.S.-equity strategies, especially tactical offerings, pushed that subset up 86% to $15.7 billion. As a result of that momentum, equity strategies have overtaken all-asset strategies (42%, versus 36%, respectively) as the largest asset breadth category in the universe. While the trend of the largest strategies garnering top asset flows continued, a second stable of smaller strategies continued to gain asset growth momentum as various platforms and other decision-makers look to diversify their product offerings and investment lineups.
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