A Profile of the Investment Adviser Profession - Evolution Revolution 2013
The Investment Adviser Association (IAA) and National Regulatory Services (NRS) issued the 13th annual Evolution/Revolution report, an in-depth study that analyzes annual updates filed by investment advisers registered with the Securities and Exchange Commission (SEC). The 2013 report is based on information on file with the SEC as of April 12, 2013.
This year’s report notes that total regulatory assets under management (RAUM) reported by all investment advisers on April 12, 2013 were $54.8 trillion, representing a significant increase from the $49.4 trillion RAUM reported in July 2012.
This 2013 report shows that the investment advisory profession is alive and well, with SEC-registered firms employing more than 700,000 professionals and serving more than 25 million individual and institutional clients. Owing to expansions in the SEC’s data collection activities, there is now even more information about the investment advisory profession. For example, the SEC is collecting more data about private fund advisers than ever before. Private funds have become a mainstream component of the investment advisory profession.
Key findings of the report include that:
- More than one-third of all SEC-registered advisers (38.1%) reported that they manage at least one private fund, with a total of 26,752 private funds with collective RAUM of $8.5 trillion – up from $8.1 trillion in July 2012
- Hedge funds comprise 40.8% of all reported private funds while private equity funds comprise approximately 32.5%
- 4,530 SEC-registered investment advisers (43%) reported that they or a related person had custody of client assets
- Less than 1% of advisers (99) reported acting as a qualified custodian in connection with their advisory services