Separately Managed Accounts Show Growth in '02

November 21, 2002 ( - Separately managed accounts grew by 20.0% during the first nine months of 2002, while assets in these accounts declined by 1.8%, according to a study by Financial Research Corp. (FRC).

The 20.0% increase represents a gain of 330,000 new separately managed accounts, which allow investors to use professional money manager stock picking skills in individual accounts.   The total number of people with separately managed accounts should grow to more than 2 million by the end of the year, FRC projects.

The 1.8% decline in total assets is being attributed to new investors bringing fewer investable assets to the accounts, due to the market slump.   By comparison, the S&P 500 has seen a decline of 28.2% and the Russell 2000 Index fell 25.1% over the same period.

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Money managers with more than $5 billion in assets under management, who control 79.7% of industry assets, brought in 67.4% of the net new accounts during the second quarter.   Money managers with less than $1 billion under management, controlling 2.5% of industry assets, brought 8.0% of the net new accounts.

FRC provides consulting and support services to the Money Management Institute, an industry group of brokerage firms and money managers involved in separately managed accounts.