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Financial Research Corporation is a financial services consulting firm based in Boston. Since 1987 FRC has been the premier provider of competitive intelligence and analytic services designed to assist strategic planners and marketing professionals develop innovative financial products and services. To request information or speak with an analyst please contact Financial Research Corporation at 617-399-5645.

Stock and bond funds experienced net inflows of $42.1 billion in April. While the Corporate Bond objective led the net inflow category with $16.6 billion, International Fixed Income funds experienced the largest net outflows with $447 million. PIMCO’s Total Return fund attracted $3.9 billion to lead the fund sales charts. The Mutual Fund Net Flows release includes ETFs in the universe of mutual funds. [Please Note: Fund-of-Funds are included at a fund and Morningstar Category level but are excluded from firm and industry level totals.]

For the next several years, mutual funds will garner annual net flows between about $130 billion and $180 billion, the low-to-mid range of where they have been over the last decade, according to the latest Mutual Fund Market Sizing study released by Financial Research Corporation (FRC). Investment managers are eager to know “what channels will drive fund sales?” In the study, FRC provides its latest model of the fund distribution landscape and a detailed cross-channel analysis of gross sales, net sales, assets, and growth rates for each of the six intermediary channels (wirehouses, regional brokers, independent brokers, banks, insurance companies, and RIAs). FRC analysts also provide commentary on the trends and business events shaping these projections.

Financial Research Corporation (FRC) has teamed up with a leading market research partner, Harris Interactive, to deliver valuable insights regarding what is happening at the point-of-purchase for investment products in FRC’s 2009 ADVISOR INSIGHT Series. This three-part series, (The State of the Financial Advisor Marketplace, Wholesaler Effectiveness, and Marketing Effectiveness), provides a detailed view from a comprehensive advisor base regarding the influence of wholesalers, power of marketing programs, and an advisor’s decision-making process.

Exchange-traded funds (ETFs) have grown at a rate of 35% compounded annually since 1999, making them the fastest growing global fund management products to surface in the last ten years. Recognizing the potential threat these emerging vehicles may pose to mutual funds in the years ahead, Financial Research Corporation (FRC) has carefully monitored ETF developments and recently teamed up with ETF industry expert Gus Fleites to explore the next frontier in ETF development actively managed ETFs.

Stock and bond funds experienced net outflows of $6.4 billion in March. While Corporate Bond funds lead the net inflow category with $17.0 billion, Domestic Equity funds experienced the largest net outflows with $18.9 billion. Fidelity Distributors Series Investment Grade Bond Fund attracted $5.7 billion to lead the fund sales charts. The Mutual Fund Net Flows release includes ETFs in the universe of mutual funds. [Please Note: Fund-of-Funds are included at a fund and Morningstar Category level but are excluded from firm and industry level totals.]

Stock and bond funds experienced net outflows of $18.1 billion in February. While Corporate Bond funds lead the net inflow category with $10.6 billion, Domestic Equity funds experienced the largest net outflows with $22.8 billion. SSgA’s SPDR Gold Shares ETF attracted $5.6 billion to lead the fund sales charts. The Mutual Fund Net Flows release includes ETFs in the universe of mutual funds. [Please Note: Fund-of-Funds are included at a fund and Morningstar Category level but are excluded from firm and industry level totals.]

Stock and bond funds experienced net inflows of $22.3 billion in January. While Corporate Bond funds lead the net inflow category with $16.1 billion, International/Global Equity funds experienced the largest net outflows with $895 million. The Mutual Fund Net Flows release includes ETFs in the universe of mutual funds. [Please Note: Fund-of-Funds are included at a fund and Morningstar Category level but are excluded from firm and industry level totals.]

Stock and bond funds experienced net inflows of $20.4 billion in December. While Domestic Equity funds lead the net inflow category with $22.3 billion, Tax-Free funds experienced the largest net outflows with $3.8 billion. SSgA’s SPDR S&P 500 ETF attracted $18.3 billion to lead the fund sales charts. The Mutual Fund Net Flows release includes ETFs in the universe of mutual funds. [Please Note: Fund-of-Funds are included at a fund and Morningstar Category level but are excluded from firm and industry level totals.]

Stock and bond funds experienced net outflows of $20.3 billion in November. While Domestic Equity funds lead the net inflow category with $2.8 billion, Corporate funds experienced the largest net outflows with $9.2 billion. SSgA’s SPDR S&P 500 ETF attracted $3.2 billion to lead the fund sales charts. The Mutual Fund Net Flows release includes ETFs in the universe of mutual funds. [Please Note: Fund-of-Funds are included at a fund and Morningstar Category level but are excluded from firm and industry level totals.]

Stock and bond funds experienced net outflows of $116.0 billion in October. While Government Funds lead the net flow category with $246 million in net outflows, Domestic Equity funds experienced the largest net outflows with $42.8 billion. BGI’s iShares MSCI Emerging Market Fund attracted $3.3 billion and SSgA’s SPDR S&P 500 ETF garnered $2.8 billion of net inflows respectively to lead the fund sales charts. The Mutual Fund Net Flows release includes ETFs in the universe of mutual funds. [Please Note: Fund-of-Funds are included at a fund and Morningstar Category level but are excluded from firm and industry level totals.]

The financial crisis is taking a toll on financial services marketing, as two-thirds of investment management company marketers expect 10%-20% budget cuts, with one-third forecasting cuts of more than 20%, according to a recent survey of financial service marketers by SwanDog Strategic Marketing and Financial Research Corporation (FRC). The survey, fielded in late October, sought to update elements of last year’s ground-breaking marketing research Beyond the Collateral.

In a new study, Caught Between Alpha and Beta— The Future of Retail Portfolio Construction, Financial Research Corporation (FRC) explores the evolution, opportunity, and vulnerability of actively managed mutual funds and emerging investment vehicles within the rapidly changing world of retail portfolio construction. Findings are based on proprietary FRC data and two comprehensive surveys—one of advisors, and one of asset managers. In this unique analysis of advisor and asset manager viewpoints, FRC compares and contrasts advisor perspectives on product usage trends and attitudes about portfolio construction with asset manager product development strategies and perceptions of competition among investment vehicles to examine whether asset manager strategies are in line with actual advisor needs. FRC also combines the insights obtained with broader knowledge of the marketplace and current events impacting it to offer ten implications for the retail asset management industry.

Stock and bond funds experienced net outflows of $21.9 billion in September. While Domestic Equity Funds lead the net inflow category with $12.8 billion, International/Global Equity funds experienced the largest net outflows with $27.6 billion. SSgA’s SPDR S&P 500 ETF and BGI’s iShares Russell 2000 Index attracted $20.2 and $6.3 billion of net inflows respectively to lead the fund sales charts. The Mutual Fund Net Flows release includes ETFs in the universe of mutual funds. [Please Note: Fund-of-Funds are included at a fund and Morningstar Category level but are excluded from firm and industry level totals.]

Acknowledging the support provided by external wholesalers during these challenging markets, 88% of respondents stated that wholesalers had been responsive to their changing needs. Russell led all firms with 98% approval, closely followed by American Century and Putnam each with 97%. These results were a component of a detailed survey of 1,860 financial advisors and 182 branch managers for Financial Research Corporation and Horsesmouth’s latest report ADVISOR INSIGHT “Wholesaler Effectiveness.”

Stock and bond funds experienced net inflows of $401 million in August. While Domestic Equity Funds lead the net inflow category with $12.9 billion, International/Global Equity funds experienced the largest net outflows with $21.5 billion. SSGA’s SPDR S&P 500 ETF and PIMCO’s Total Return fund attracted $3.6 and $1.7 billion of net inflows respectively to lead the fund sales charts. The Mutual Fund Net Flows release includes ETFs in the universe of mutual funds. [Please Note: Fundof- Funds are included at a fund and Morningstar Category level but are excluded from firm and industry level totals.]

Stock and bond funds experienced net outflows of $3.9 billion in July. International/Global Equity funds experienced the largest net outflows with$7.6 billion, followed by Domestic Equity funds with $3.5 billion. SSGA’s SPDR Trust and streetTRACKS Gold products attracted $4.8 and $4.3 billion of net inflows respectively to lead the fund sales charts. The Mutual Fund Net Flows release includes ETFs in the universe of mutual funds. [Please Note: Fund-of-Funds are included at a fund and Morningstar Category level but are excluded from firm and industry level totals.]

Rollovers are expected to steadily increase from $260 billion in 2007 to nearly $500 billion by 2013 presenting proprietary and investment-only DC managers with significant retention opportunities, according to FRC’s latest research study IRA Rollover Dynamics 2008—Market Sizing, Benchmarks, & Best Practices. “Asset managers whose companies are not planning to own or offer 401(k) programs should not ignore the rollover opportunity,” stated Luis Fleites, Vice President of Retirement Markets at FRC. “Visionary asset managers should consider joining the sparse ranks of their peers that are actively focusing on influencing the rollover decisions that their distributors control—both retaining DC asset and attracting new ones—because at least $40 billion per year in assets is on the line for retention, and potentially much more for acquisition. Developing measurement capabilities will be key to success."

Stock and bond funds experienced net inflows of $20.2 billion in June. Equity funds led the way with net inflows of $15.9 billion, followed by Tax-Free funds with $2.2 billion. SSGA’s SPDR S&P Financial ETF attracted $2.7 billion of net inflows to lead the fund sales charts. The Mutual Fund Net Flows release includes ETFs in the universe of mutual funds. [Please note: Fund-of-Funds are included at a fund and Morningstar Category level but are excluded from firm and industry level totals.]

Although the sub-advisory business in Europe is small, representing just 5.4% of assets, its growth rate exceeds that of the European average, according to a new report published jointly by U.S. sub-advised data provider Financial Research Corporation (FRC) and Lipper FERI, a London-based research firm that specializes in European mutual fund markets.

Stock and bond funds experienced net inflows of $34.6 billion in May. International/Global funds led the way with net inflows of $14.7 billion, followed by Corporate funds with $8.2 billion. PIMCO’s Total Return Fund attracted $2.1 billion of net inflows to lead the fund sales charts. The Mutual Fund Net Flows release includes ETFs in the universe of mutual funds. [Please Note: Fund-of-Funds are included at a fund and Morningstar Category level but are excluded from firm and industry level totals.]

When looking at 2020 funds, there is a wide range in equity allocations spanning from 51% to 90%, according to a study just released by Financial Research Corporation (FRC) entitled Future Outlook for Lifecycle Funds: Insights into Emerging Trends and Growth Opportunities.

Stock and bond funds experienced net inflows of $24.7 billion in April. International/Global funds led the way with net inflows of $12.7 billion, followed by Corporate funds with $7.0 billion. PIMCO’s Total Return Fund attracted $2.5 billion of net inflows to lead the fund sales charts. The Mutual Fund Net Flows release includes ETFs in the universe of mutual funds. [Please Note: Fund-of-Funds are included at a fund and Morningstar Category level but are excluded from firm and industry level totals.]

Based on a survey of financial advisors by Financial Research Corporation and Horsesmouth, 72% of survey respondents strongly agreed that AssetMark is focused on advisors. Rounding out the top-three firms that advisors ‘strongly agreed’ are focused on advisors were Dimensional Fund Advisors with 65% and Russell Investments with 62%, compared to the average firm score of 35%.

When asked about their likelihood of reading/responding to a marketing piece delivered by various methods, advisors overwhelmingly chose wholesalers, with 35% responding “highly likely” and nearly half responding “somewhat likely.” Posted on their firm’s intranet site was the option that placed a distant second with 13% responding “highly likely.” According the responses provided by 1,800 financial advisors in FRC and Horsesmouth’s ADVISOR INSIGHT Marketing Effectiveness report, Jackson National, Natixis, JennisonDryden, Dreyfus, and John Hancock were the top five firms that were above average for delivery via wholesalers. Looking at advisor responses by channel, representatives at banks, credit unions, and S&Ls had the highest percentage of responding “highly likely” to material delivered by a wholesaler, closely followed by insurance company advisors and dual-registered RIAs with a wirehouse. In reality, mailed hard copy was the method most mentioned by advisor as how firms currently deliver marketing materials.

Stock and bond funds experienced net inflows of $24.6 billion in March. Domestic Equity funds led the way with net inflows of $17.5 billion, followed by Government funds with nearly $3.0 billion. State Street Global Advisors’ SPDR Trust attracted $14.8 billion of net inflows to lead the fund sales charts. The Mutual Fund Net Flows release includes ETFs in the universe of mutual funds. [Please Note: Fund-of-Funds are included at a fund and Morningstar Category level but are excluded from firm and industry level totals.]

With the vast majority, 83%, of financial services executives believing that marketing’s impact will grow over the next five years, firms must transform their marketing areas from communications and sales support engines to strategic functions, according to a recent study entitled “Beyond the Collateral: Unlocking Marketing’s Strategic Potential for Competitive Advantage” published by Financial Research Corporation (FRC) and SwanDog Strategic Marketing. Findings are based on 125 survey responses, as well as dozens of in-person interviews with senior management, heads of distribution, and marketing leaders from both large and small financial services firms. The study also draws upon the authors’ collective 80+ years as marketing practitioners in the financial space.

Financial Research Corporation (FRC) and Horsesmouth have released Volume Two of their ADVISOR INSIGHT series, which establishes advisor preferences, identifies best practices, and profiles successful firms with regard to value-added programs (VAPs) and marketing materials.

Stock and bond funds experienced net inflows of $17.1 billion in February. International/Global funds led the way with net inflows of $15.8 billion, followed by Corporate funds with a $7.4 billion net intake. Vanguard topped all complexes with nearly $7.8 billion of net inflows. PIMCO Total Return collected $2.9 billion to lead the fund sales charts. The Mutual Fund Net Flows release includes ETFs in the universe of mutual funds. [Please Note: Fund-of-Funds are included at a fund and Morningstar Category level but are excluded from firm and industry level totals.]

“Step-out” trades, or the practice of “trading-away” as it is commonly called, is expected to grow significantly among managers participating in the retail Separately Managed Account (SMA) space, according to findings from FRC’s latest SMA trading practices survey. Findings are based on a survey of more than thirty retail SMA managers, collectively representing nearly a third of the SMA industry’s accounts. FRC was commissioned by Citi's Investment Administration Services, one of the leading providers of operations outsourcing to the managed accounts industry, to conduct this custom survey in February 2008.

Stock and bond funds experienced net outflows of $25.6 billion in January. Government funds led the way with net inflows of $6.5 billion, followed by Corporate funds with a $5.8 billion net intake. Vanguard topped all complexes with nearly $8.0 billion of net inflows. PIMCO Total Return collected $4.1 billion to lead the fund sales charts. The Mutual Fund Net Flows release includes ETFs in the universe of mutual funds. [Please Note: Fund-of-Funds are included at a fund and Morningstar Category level but are excluded from firm and industry level totals.]

Annuities in Defined Contribution (DC) plans are gaining momentum as aging baby boomers seek to create guaranteed retirement income streams, according to the latest FRC report entitled, “Guaranteed Annuities in Defined Contribution Plans: Current Products and Future Prospects.” In the report, FRC reveals key trends that will determine the evolution and success of annuities in DC plans, provides in-depth product profiles for current plan offerings for Genworth ClearCourse, Hartford Lifetime Income, MetLife Personal Pension Builder, and Prudential IncomeFlex, as well as four steps manufacturers should take to overcome adoption challenges.

Stock and bond funds experienced net inflows of $47.2 billion in December. Domestic Equity funds led the way with net inflows of $29.2 billion, followed by International/Global funds with a $$17.1 billion net intake. State Street Global Advisors topped all complexes with $26.1 billion of net inflows. State Street Global Advisors’ SPDR Trust collected $21.6 billion to lead the fund sales charts. The Mutual Fund Net Flows release includes ETFs in the universe of mutual funds. [Please Note: Fund-of-Funds are included at a fund and Morningstar Category level but are excluded from firm and industry level totals.]

UMB Bank, JPMorgan Chase, and Vanguard represent a minority of financial institutions that are effectively promoting health savings accounts (HSAs) by creating destination Web sites or co-marketing the accounts with HSA providers, according to FRC’s new research report entitled “Health Savings Accounts as Retirement Savings Protection.”

FRC projects that mutual fund net sales will grow at 2% annually, reaching $340 billion by 2012. Starting from much smaller asset bases, other products will grow at eight times the rate of mutual funds, according to FRC’s new study, Mutual Fund Market Sizing 2007-2012: An Analysis of Channels, Sales, and Assets.

Stock and bond funds experienced net inflows of $502 million in November. International/Global funds led the way with net inflows of $6.4 billion, followed by Government funds with a $950 million net intake. State Street Global Advisors topped all complexes with $6.1 billion of net inflows. State Street Global Advisors’ SPDR Trust collected $5.7 billion to lead the fund sales charts. The Mutual Fund Net Flows release includes ETFs in the universe of mutual funds. [Please Note: Fund-of-Funds are included at a fund and Morningstar Category level but are excluded from firm and industry level totals.]

Stock and bond funds experienced net inflows of $29.5 billion in October. International/Global funds led the way with net inflows of $28.6 billion, followed by Corporate funds with a $8.8 billion net intake. Barclays Global Investors topped all complexes with $14.4 billion of net inflows. Barclays Global Investors’ iShares S&P 500 Index collected $4.5 billion to lead the fund sales charts. The Mutual Fund Net Flows release includes ETFs in the universe of mutual funds. [Please Note: Fund-of-Funds are included at a fund and Morningstar Category level but are excluded from firm and industry level totals.]

Financial Research Corporation (FRC) and SwanDog Strategic Marketing joined forces to explore the current state of marketing in the intermediary-driven financial services space and prospects for its future. The study, entitled Beyond the Collateral: Unlocking Marketing’s Strategic Potential for Competitive Advantage, is one of the most comprehensive examinations of marketing ever undertaken in the intermediary-driven financial services space. Findings are based on 125 survey responses, as well as dozens of in-person interviews with senior management, heads of distribution, and marketing leaders from both large and small financial services firms. The study also draws upon the authors’ collective 80+ years as marketing practitioners in the financial space.

Stock and bond funds experienced net inflows of $37.9 billion in September. International/Global funds led the way with net inflows of $20.5 billion, followed by Domestic Equity funds with a $11.2 billion net intake. Barclays Global Investors topped all complexes with $9.5 billion of net inflows. State Street Global Advisors’ SPDR Trust ETF collected $5.4 billion to lead the fund sales charts. The Mutual Fund Net Flows release includes ETFs in the universe of mutual funds. [Please Note: Fund-of-Funds are included at a fund and Morningstar Category level but are excluded from firm and industry level totals.]

Financial Research Corporation (FRC) has released a new research study that presents an empirical analysis of retiree income/asset draw-down patterns and uses this data to derive estimated market size and growth projections.

Financial Research Corporation today announced that October 2007 marks its 20-year anniversary as a trusted, independent market researcher and consultant to the asset management industry.

Stock and bond funds experienced net inflows of $1.75 billion in August. Domestic Equity funds led the way with net inflows of $4.5 billion, followed by International/Global funds with a $1.24 billion net intake. State Street Global Advisors topped all complexes with $14.5 billion of net inflows. State Street Global Advisors’ SPDR Trust ETF collected $13 billion to lead the fund sales charts. The Mutual Fund Net Flows release includes ETFs in the universe of mutual funds. [Please Note: Fund-of-Funds are included at a fund and Morningstar Category level but are excluded from firm and industry level totals.]

Financial Research Corporation (FRC) has just released a new research study that examines whether investors are predisposed to adopt the new solution-oriented products and services emerging from investment product providers and financial advisory firms, or whether they are tied to investment behaviors of the past. According to the study, Evolution of the Solution: Investor Perceptions of Solution-Oriented Products & Services, the larger the percentage of total investment assets held in employer-sponsored retirement plans, the more interested investors are in solutions like lifecycle funds. Similarly, the larger the percentage of assets held in personal accounts, including IRAs and taxable investment accounts, the more likely investors are to use the services of an advisor.

Merging institutional and retail marketing groups isjust one of “five bold structural changes” suggested to financial industry marketers in a new study set for release in September. The new research, co-authored by Financial Research Corporation and SwanDog Strategic Marketing, calls for a number of moves to repurpose and strengthen marketing in an effort to make it more directly accountable for contributions to the firm’s revenues and bottom line.

Stock and bond funds experienced net inflows of $26.7 billion in July. International/Global funds led the way with net inflows of $19.2 billion, followed by Corporate funds with a $3.5 billion net intake. American Funds topped all complexes with $5.6 billion of net inflows. Fidelity’s Nasdaq 100 Index collected $4.9 billion to lead the fund sales charts. The Mutual Fund Net Flows release includes ETFs in the universe of mutual funds. [Please Note: Fund-of-Funds are included at a fund and Morningstar Category level but are excluded from firm and industry level totals.]

Financial Research Corporation is pleased to announce the recent hiring of Mr. Scott DeMonte as Director of Variable Annuities research.

Stock and bond funds experienced net inflows of $23.2 billion in June. International/Global funds led the way with net inflows of $16.6 billion, followed by Corporate funds with a $5 billion net intake. Vanguard topped all complexes with $5.9 billion of net inflows. The Nasdaq 100-Trust 1 collected $2.3 billion to lead the fund sales charts. The Mutual Fund Net Flows release includes ETFs in the universe of mutual funds. [Please Note: Fund-of-Funds are included at a fund and Morningstar Category level but are excluded from firm and industry level totals.]

Financial Research Corporation (FRC) has released a new research study that provides investment-only defined contribution (IODC) asset managers with strategic and tactical advice. This research report, entitled IODC Growth Opportunities: Capitalizing on Changes in a Dynamic Market, was derived from a primary research survey conducted February through April of 2007 of 15 asset managers of various fund sizes and differing experience levels representing more than one-quarter of all IODC assets. Additionally, FRC interviewed a number of asset manager and DC recordkeeper executives on their organizational structure, staffing, distribution options, product development, business threats, and opportunities.

Financial Research Corporation has extended its expertise in the retirement research market with the appointment of Mr. Luis Fleites as Vice President, Director of Retirement Markets. Luis will be responsible for both the retail and institutional retirement markets, which includes the annuities marketplace.

Financial Research Corporation (FRC) and Horsesmouth have just released a joint research study that provides insights into the types of wholesaler support advisors value most and which firms are doing the best job of delivering that support.

Stock and bond funds experienced net inflows of $25.8 billion in May. International/Global funds led the way with net inflows of $15.5 billion, followed by Corporate funds with a $12.7 billion net intake.

Financial Research Corporation’s (FRC) 3rd Annual Retirement Forum designed for product leaders is nearly sold out, attracting a crowd of senior executives from leading financial services firms to the Four Seasons Hotel in Boston, Massachusetts, on Wednesday, June 13, 2007.

Stock and bond funds experienced net inflows of $33 billion in April. International/Global funds led the way with net inflows of $25 billion, followed by Corporate funds with a $9.8 billion net intake.

FRC announced today collaboration with SwanDog Strategic Marketing, LLC on a groundbreaking research project designed to challenge the marketing status quo and highlight successful marketing models within asset management and insurance firms.

Stock and bond funds experienced net inflows of $36.4 billion in March. Domestic Equity funds led the way with net inflows of $13.6 billion, followed by Corporate funds with a $11.5 billion net intake.

Financial Research Corporation (FRC) fills a research void for international product manufacturers and distribution executives at asset management firms with the rollout of FRC’s World of Opportunity in International Funds study that tracks Changes in Advisor Usage of International Products.

Stock and bond funds experienced net inflows of $46.7 billion in February. International/Global funds led the way with net inflows of $20.7 billion, followed by Domestic Equity funds with a $13.1 billion net intake.

Seasoned financial services expert Ian Rubin has joined the senior management team of Financial Research Corporation as Senior Vice President and Director of its Retail Investment Markets Programs and as head of its Strategic Advisory Business.

Stock and bond funds experienced net inflows of $52.9 billion in January. International/Global funds led the way with net inflows of $24.7 billion, followed by Domestic Equity funds with a $13.7 billion net intake.

Stock and bond funds experienced net inflows of $39.4 billion in December. International/Global funds led the way with net inflows of $26.5 billion, followed by Corporate funds with a $8.2 billion net intake.

Stock and bond funds experienced net inflows of $17.4 billion in November. International/Global funds led the way with net inflows of $13.3 billion, followed by Corporate funds with a $7 billion net intake.

Stock and bond funds experienced net inflows of $45.6 billion in October. International/Global funds led the way with net inflows of $20 billion, followed by Domestic Equity funds with a $14.6 billion net intake.

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