Study Finds More Manage Less in 2002

May 28, 2003 ( - Half of the money managers registered with the Securities and Exchange Commission had fewer assets to manage this year than in 2002, according to a report by the Investment Counsel Association of America and National Regulatory Services.

The number of investment advisers also is increasing, with 7,852 registered with the SEC as of April 8. That’s up 3.6% from the prior year, but just half 2002’s growth rate.  

Hedge funds provided the only bright spot for the industry, as the number of federally registered investment advisers to hedge funds jumped 8% from 2002, according to Dow Jones.   Tracking that trend, a growing number of money managers, 1,762 according to the report, are advising hedge funds or other private investment pools, up 8% from 1,619 in 2002. Overall, the study found 22% of money managers now advise hedge funds, up from 21% in 2002.

Total assets under management fell to $20.6 trillion from $22.1 trillion in 2002, fueled by a decline in discretionary assets, which fell 8% to $18.1 trillion.   However, non-discretionary assets under professional management rose slightly to $2.5 trillion from $2.3 trillion in 2002, according to the report.

The joint study is the third in a series of reports on trends in the advisory profession, based on information filed with the SEC’s Investment Adviser Registration Depository.