Opalesque Industry Update - Cerulli Associates, a Boston-based global analytics firm, projects the U.S. institutional market to increase 30% to $19 trillion in assets within the next 5 years. Cerulli defines the institutional market based on the identity of the end-client, classifying assets as institutional only when the asset manager's end-client is an institution.|
"As of year-end 2012, the institutional market held $14.5 trillion in assets under management," states Michele Guiditta, associate director at Cerulli. "And, with more than $4.0 trillion in assets, private defined contribution remains the largest U.S. institutional market."
In this new report, Institutional Markets 2013: Gaining Marketshare as Shifting Portfolio Construction Presents New Opportunities and Challenges, Cerulli provides insight into U.S. institutional markets, including distribution and product trends within public and private pensions, endowments and foundations, and insurance general accounts.
"The shift from defined benefit (DB) to defined contribution (DC) is continuing," explains John Hsu, senior analyst at Cerulli. "DC markets continue to grow faster than DB markets and we anticipate that trend will continue."
Cerulli highlights an opportunity for asset managers who have shifted their focus to DC to leverage existing relationships with corporate DB plan sponsors, allowing them to win DC mandates and potentially extend to custom target-date solutions.