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New Tiburon Mutual Funds Research Report
Tiburon Strategic Advisors, a market research & strategy consulting firm serving a wide variety of financial institutions and investment managers, is pleased to announce the release of its newly updated research report on the Mutual Funds industry. This report provides a comprehensive overview for industry executives seeking a top-down perspective on mutual funds, including their markets & distribution channels, and future predictions for the industry. This research release summarizes some of the report's highlights around the sustained growth and current status of the Mutual Funds industry.
Market Growth
 Please click the image above to view the table of contents for Tiburon's newly updated Mutual Funds Research Report |
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The mutual funds industry has grown continuously for decades, which can be seen through the measurement of the number of companies, mutual funds, investors, accounts, assets under management, net flows, revenues, and profits.
There are 641 mutual fund companies, an increase of over 40 since 2005. The 641 mutual fund companies are owned by 591 mutual fund parent companies. In other words, 50 of the mutual fund parent companies own two or more underlying mutual fund companies.
Including all stock mutual funds, bond mutual funds, and money market funds, there are 7,929 open-end mutual funds. There are 4,506 stocks funds, 2,019 bond funds, and 1,404 money market funds.
The number of consumer households investing in mutual funds is staggering; over 50 million consumer households own mutual funds. Since 1980, the number of households investing in mutual funds has been steadily increasing, growing 900% between 1980 and 2004. Over three-quarters of consumer households with incomes over $100,000 are invested in mutual funds, as compared to one-tenth of those with less than $25,000 incomes. Three-quarters of consumer households with incomes between $75,000 and $99,000 invest in mutual funds, while two-thirds of households with incomes between $50,000 and $74,999 invest in mutual funds.
There are nearly 265 million mutual fund industry shareholder accounts, up hugely, especially in the 1990s. The number of accounts doubled four fold from 1980 to 1998, but growth has slowed a bit since then. From 2000 to 2004, the number of shareholder accounts grew from 244.8 to 267.4.
Open-end mutual funds assets under management are over $9 trillion, up 10% since 2004, having grown steadily between 1996 and 2001 before a 10% decrease in 2002. However, open-end mutual funds rebounded with a 50% increase between 2002 and 2006. Similarly, the total of mutual funds, closed-end funds, exchange traded-funds, & variable annuities' assets under management also grew steadily throughout the 1980s and 1990s, before also hitting a bump in 2002, but subsequently have continued on their 
growth trajectory. In 1990, there was $1.1 trillion invested in these packaged products, which grew to $2.8 trillion in 1995 before growth exploded to reach $7.0 trillion in 2000. There was no growth from 2000 to 2001, with mutual funds assets holding at $7.0 trillion in 2001. In 2002, assets under management fell to $6.4 trillion, although industry assets under management recovered quickly, bouncing back to $7.4 billion in 2003, and are now at their highest point ever at $10.6 trillion.
Mutual funds, closed-end funds, unit investment trusts, exchange traded funds, & variable annuities' collective net flows have been significantly lower in recent years. Net flows for mutual funds,
closed-end funds, unit investment trusts, exchange traded funds, & variable annuities grew 110% before dropping 74% in 2002. From their high in 2001 of $624 billion net flows, net flows fell to $144 billion in 2004. The slow down in net flows may be attributed to outflows from money market funds into other investment products.
Current Status
The next section of the report describes the current status of the mutual funds industry by addressing developments in both investment styles and product structures.
Investment styles have seen developments in thirteen distinguishable styles, including those within international funds, target date (life cycle) funds, & index funds.
Other investment styles include leveraged funds, inverse funds, hedge fund strategies, sector funds, real estate funds, commodity funds, currency funds, focused mutual funds, socially responsible funds, and tax efficient funds. In addition, the industry can be analyzed through another eight product structures, including share classes, funds-of-funds, mutual fund wrap accounts, open-end & closed-end funds, exchange traded funds, variable annuities, unified managed accounts, and performance fee mutual funds.
To better understand the developments in the mutual funds industry, executives can purchase Tiburon's Mutual Funds research report where the Market Growth and Current Status sections highlighted above are covered in greater detail. Please contact Sarah Sage at SSage@TiburonAdvisors.Com or 415-789-2540.
More Information
The following links will open specific pages on Tiburon's web site:
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Tiburon Strategic Advisors
Tiburon Strategic Advisors, based in Tiburon, CA, was formed in 1998 to offer market research & strategy consulting services to all types of financial institutions and investment managers:
- The firm has served over 300 corporate clients and completed almost 1,000 projects since its founding, and today, its knowledge base includes mutual fund distribution, separately managed account programs, alternative investments, wealth management, insurance products, banking services, the fee-only financial advisor market, the CPA firm market, the family office market, and various international markets.
- Tiburon holds a series of CEO Summits semi-annually for its executive-level clients. The next CEO Summit is scheduled for October 9-10, 2007 at the Ritz Carlton Hotel in San Francisco, CA. 2008-2009 dates are April 10-11, 2008 (New York, NY), October 14-15, 2008 (San Francisco, CA), April 9-10, 2009 (New York, NY), and October 7-8, 2009 (San Francisco, CA). Attendance is by invitation only and attendance at each Summit is limited to 100 senior industry executives. Visit the CEO Summits section of Tiburon's web site for details on current and past CEO Summits, including attendee lists, meeting agendas, and highlights. Please contact Tiburon's Managing Principal Chip Roame at CRoame@TiburonAdvisors.Com or (415) 789-2541 if you are a Tiburon client and have an interest in attending a future Tiburon CEO Summit.
- Tiburon offers thirteen online business benchmarking tools that are available to all types of financial advisors in an effort to help them benchmark their business practices and build more successful businesses. The sites include www.BrokerBestPractice.Com for wirehouse & regional brokers, www.FABestPractices.Com for fee-only financial advisors, www.IndependentRepBestPractices.Com for independent reps, and www.PrivateBankerBestPractices.Com for private bankers. Almost 5,000 advisors have used these tools. By completing one of the online surveys, financial advisors can access a FREE copy of the relevant comprehensive Tiburon research report, which summarizes and analyzes the collective results.
- Tiburon has published twenty-six ~300-400+ page research reports, which offer detailed analyses of growing business segments; each is available for $5,000; these reports can be ordered by contacting Sarah Sage at SSage@TiburonAdvisors.Com or (415) 789-2546.
- Tiburon offer an annual research report retainer, whereby dozens of clients receive all Tiburon reports with in a year for $25,000; clients can subscribe to the 2007 or 2008 Tiburon Research Report Retainer by contacting Sarah Sage at SSage@TiburonAdvisors.Com or (415) 789-2540.
- Tiburon has developed a database access program, whereby it shares its 250,000+ person industry executives contacts database with dozens of clients for $25,000 per year (shared quarterly); clients can subscribe to Tiburon Database Access Program by contacting Sarah Sage at SSage@TiburonAdvisors.Com or (415) 789-2540.
- Tiburon's weekly research releases, like this one, are emailed for free to interested industry executives, media representatives, conference planners, and individual financial advisors. Over 48,000 industry executives now receive these releases. Feel free to sign up to receive future research releases at Tiburon's web site (www.TiburonAdvisors.Com) if this release was passed to you by a colleague and you would like to receive them directly in the future.
- Tiburon plans to expand its workforce in 2007 and 2008. New research managers will develop proprietary research content for Tiburon research reports and client projects, and new marketing managers will enhance the firm's web site, weekly research releases program, and the firm's relationships with media representatives, conference planners, and its clients & executive program members. The firm is also seeking to add a director of research, principal candidates, and possibly a chief consulting officer in 2007 or 2008.
- Tiburon has built three executive programs (CEOs-in-Residence, Financial Advisor Roundtable, and Consulting Fellows) in an effort to bring the experiences of additional senior level industry executives to Tiburon clients. Feel free to contact any of the members of Tiburon's executive programs directly or ask that they be included in any ongoing Tiburon project.
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