The concept of asset allocation models isn’t new by any means, but how it is delivered to RIAs, Consultants, and other Institutional gatekeepers has never carried as much importance as it does today. Fee compression and commoditization of investment products over the last decade are threatening already slim margins in asset management. Read more
While mutual funds may still dominate the U.S. market, ETFs are gaining traction quickly. According to the 2019 Investment Company Institute Factbook, at the end of 2018, the U.S. domestic mutual funds market amounted to $17.7 trillion in total net assets. At the end of 2018, US domestic ETFs had $3.4 trillion in total net assets, which is double the assets in ETFs from just five years ago. Index domestic equity ETFs are attracting one and a half times the net inflows of index domestic equity mutual funds since 2009. Clearly, ETFs have become very popular investments in a rather short period of time and are continuing to grow. Read more
As I discussed in my last blog post, Collective Investment Trust (CIT) growth is something we’ve been keeping a close eye on here at Delta Data.
I believe this trend strikes a particularly loud chord within the industry today because it’s a microcosm of the seismic changes we’re helping our client’s weather in terms of product strategy. It’s yet another moment in time in our industry where the curtain has been pulled back to reveal some of the back-office shortcomings that have plagued us for years, like siloed data systems that rely heavily on manual processes and spreadsheets. Read more