We last reviewed changes in Asset Allocation in the Advisor Perspectives (AP) Universe August 15, 2007, and prior to that on May 27, 2007 . This week we look at changes since August 15, a period of twelve weeks encompassing significant market volatility.
Our analysis looks at changes across the entire AP Universe. The AP Universe consists of assets from high net worth (HNW) and ultra-high net worth (UHNW) investors being managed by Registered Investment Advisors (RIAs). The AP Universe is divided into three tiers based on account size. In the tier containing the Largest Accounts, the average account size is approximately $3.7 million (and this remained constant over the 12 week period). Approximately 94% of the assets (by market value) are in the Largest Accounts, so this analysis is primarily indicative of shifts in this account tier. The size of the AP Universe grew by 21.1% over this period, through the addition of new RIAs and new accounts.
Some of the significant trends occurring during this period include:
- Asset allocation by asset class showed a 1.2% decrease in the equity portion (including US and non-US equities), roughly offset by a 1.1% increase in the cash allocation. During this period the Dow rose by 1.9%, from 12,861 to 13,110. Although RIAs did not make any significant changes to overall asset allocations, by asset class, during this time period, the decrease in US equities and the increase in cash holdings is worthy of note.
- Approximately 1.9% of assets were shifted out of the US markets, and allocations to foreign markets grew by 0.6%, with cash holdings (as noted above) growing by 1.1%. This is a continuation of a trend that we noted in our previous two analyses. Within foreign equities, there was a shift out of foreign emerging markets (-2.1%) and into foreign developed markets (+1.9%). Within the foreign developed markets, there was a noticeable shift out of foreign blend (-10.0%) and into foreign growth (+10.7%), which was a continuation of a trend in the prior 12 week period.
- Within the US equity markets, there has been a significant trend out of value (-4.9%) and into blend (+1.9%) and growth (+3.1%). Since May 27, assets have shifted out of value (-6.7%) and into blend (+3.2%) and growth (+3.6%).
- In the taxable fixed income markets, the flight to quality we noted in our previous analysis (to higher rated and shorter maturity bonds) abated. Investment grade corporate/taxable allocations declined by 2.6%, while medium grade allocations grew by 2.8%. This may be due to downgrades from rating agencies rather than a shift in assets by RIAs. In the municipal markets the flight to quality continued, with investment grade allocations growing by 1.8%, medium grade allocations declining by 0.7% and high yield allocations declining by 1.1%. In the municipal markets, RIAs shortened their maturities, shifting out of medium and long term bonds and into shorter term bonds. However, in the taxable markets, RIAs moved out of short term bonds (-7.7%) and into medium term (+5.0%) and long term (+2.7%) bonds.
The tables below show the complete data for the AP Universe for the period from 8/15/07 to 11/15/07, as well as from 5/27/07 to 11/15/07.
Asset Class |
5/27/2007 |
8/15/2007 |
11/15/2007 |
11/15/2007 |
Change from
5/27 to 11/15 |
Change from
8/15 to 11/15 |
Bonds |
27.7% |
29.2% |
$12,735,114,642 |
28.9% |
1.2% |
-0.3% |
Cash |
8.4% |
7.9% |
$3,964,448,194 |
9.0% |
0.6% |
1.1% |
Equities |
63.5% |
62.1% |
$26,856,073,074 |
60.9% |
-2.6% |
-1.2% |
Other |
0.4% |
0.8% |
$533,161,483 |
1.2% |
0.8% |
0.4% |
|
|
|
$44,088,797,393 |
|
|
|
Domicile |
5/27/2007 |
8/15/2007 |
11/15/2007 |
11/15/2007 |
Change from
5/27 to 11/15 |
Change from
8/15 to 11/15 |
Cash |
8.4% |
7.9% |
$3,964,448,194 |
9.0% |
0.6% |
1.1% |
Foreign |
9.8% |
11.5% |
$5,354,956,963 |
12.1% |
2.3% |
0.6% |
Unknown |
10.4% |
11.2% |
$4,999,223,630 |
11.3% |
0.9% |
0.1% |
US |
71.4% |
69.4% |
$29,770,168,606 |
67.5% |
-3.9% |
-1.9% |
|
|
|
$44,088,797,393 |
|
|
|
Non-US Assets |
5/27/2007 |
8/15/2007 |
11/15/2007 |
11/15/2007 |
Change from
5/27 to 11/15 |
Change from
8/15 to 11/15 |
Foreign Developed
Equities |
88.4% |
73.2% |
$4,020,436,312 |
75.1% |
-13.3% |
1.9% |
Foreign Emerging
Equities |
8.7% |
23.9% |
$1,166,783,327 |
21.8% |
13.1% |
-2.1% |
Foreign Bonds |
2.9% |
2.9% |
$167,737,324 |
3.1% |
0.2% |
0.2% |
|
|
|
$5,354,956,963 |
|
|
|
US Equities
by Market Cap |
5/27/2007 |
8/15/2007 |
11/15/2007 |
11/15/2007 |
Change from
5/27 to 11/15 |
Change from
8/15 to 11/15 |
Large Cap |
65.3% |
65.2% |
$13,206,731,488 |
66.0% |
0.7% |
0.8% |
Mid Cap |
21.1% |
20.2% |
$4,015,356,844 |
20.1% |
-1.0% |
-0.1% |
Small Cap |
13.6% |
14.6% |
$2,802,360,301 |
14.0% |
0.4% |
-0.6% |
|
|
|
$20,024,448,633 |
|
|
|
US Equities
by Style |
5/27/2007 |
8/15/2007 |
11/15/2007 |
11/15/2007 |
Change from
5/27 to 11/15 |
Change from
8/15 to 11/15 |
Value |
13.8% |
12.0% |
$1,416,082,969 |
7.1% |
-6.7% |
-4.9% |
Blend |
55.7% |
57.0% |
$11,788,198,946 |
58.9% |
3.2% |
1.9% |
Growth |
30.5% |
31.0% |
$6,820,166,718 |
34.1% |
3.6% |
3.1% |
|
|
|
$20,024,448,633 |
|
|
|
US Equities by
Cap/Style |
5/27/2007 |
8/15/2007 |
11/15/2007 |
11/15/2007 |
Change from
5/27 to 11/15 |
Change from
8/15 to 11/15 |
Large Cap Value |
8.6% |
7.4% |
$564,034,617 |
2.8% |
-5.8% |
-4.6% |
Large Cap Blend |
39.4% |
40.5% |
$8,350,400,954 |
41.7% |
2.3% |
1.2% |
Large Cap Growth |
17.3% |
17.3% |
$4,292,295,917 |
21.4% |
4.1% |
4.1% |
Mid Cap Value |
2.3% |
1.9% |
$298,242,002 |
1.5% |
-0.8% |
-0.4% |
Mid Cap Blend |
9.5% |
9.5% |
$2,031,504,993 |
10.1% |
0.6% |
0.6% |
Mid Cap Growth |
9.3% |
8.8% |
$1,685,609,849 |
8.4% |
-0.9% |
-0.4% |
Small Cap Value |
2.9% |
2.7% |
$553,806,350 |
2.8% |
-0.1% |
0.1% |
Small Cap Blend |
6.8% |
7.0% |
$1,406,292,999 |
7.0% |
0.2% |
0.0% |
Small Cap Growth |
3.9% |
4.9% |
$842,260,952 |
4.2% |
0.3% |
-0.7% |
|
|
|
$20,024,448,633 |
|
|
|
Foreign Developed
Equities by Market Cap |
5/27/07 |
8/15/07 |
11/15/2007 |
11/15/2007 |
Change from
5/27 to 11/15 |
Change from
8/15 to 11/15 |
Large Cap |
92.0% |
92.8% |
$3,745,911,809 |
93.2% |
1.2% |
0.4% |
Mid Cap |
5.7% |
4.4% |
$185,091,288 |
4.6% |
-1.1% |
0.2% |
Small Cap |
2.2% |
2.7% |
$89,433,215 |
2.2% |
0.0% |
-0.5% |
|
|
|
$4,020,436,312 |
|
|
|
Foreign Developed
Equities by Style |
5/27/2007 |
8/15/2007 |
11/15/2007 |
11/15/2007 |
Change from
5/27 to 11/15 |
Change from
8/15 to 11/15 |
Value |
20.2% |
19.2% |
$745,046,796 |
18.5% |
-1.7% |
-0.7% |
Blend |
61.9% |
64.4% |
$2,187,372,691 |
54.4% |
-7.5% |
-10.0% |
Growth |
17.9% |
16.4% |
$1,088,016,825 |
27.1% |
9.2% |
10.7% |
|
|
|
$4,020,436,312 |
|
|
|
Foreign Developed
Equities by Cap/Style |
5/27/2007 |
8/15/2007 |
11/15/2007 |
11/15/2007 |
Change from
5/27 to 11/15 |
Change from
8/15 to 11/15 |
Large Cap Value |
16.8% |
15.5% |
$680,308,165 |
16.9% |
0.1% |
1.4% |
Large Cap Blend |
59.0% |
62.6% |
$2,013,082,920 |
50.1% |
-8.9% |
-12.5% |
Large Cap Growth |
16.3% |
14.7% |
$1,052,520,724 |
26.2% |
9.9% |
11.5% |
Mid Cap Value |
2.2% |
2.3% |
$57,632,391 |
1.4% |
-0.8% |
-0.9% |
Mid Cap Blend |
2.6% |
1.4% |
$98,896,779 |
2.5% |
-0.1% |
1.1% |
Mid Cap Growth |
0.9% |
0.8% |
$28,562,118 |
0.7% |
-0.2% |
-0.1% |
Small Cap Value |
1.3% |
1.5% |
$7,106,240 |
0.2% |
-1.1% |
-1.3% |
Small Cap Blend |
0.3% |
0.4% |
$75,392,992 |
1.9% |
1.6% |
1.5% |
Small Cap Growth |
0.7% |
0.9% |
$6,933,983 |
0.2% |
-0.5% |
-0.7% |
|
|
|
$4,020,436,312 |
|
|
|
Foreign Emerging
Equities by Market
Cap |
5/27/2007 |
8/15/2007 |
11/15/2007 |
11/15/2007 |
Change from
5/27 to 11/15 |
Change from
8/15 to 11/15 |
Large Cap |
92.4% |
97.4% |
$1,130,449,375 |
96.9% |
4.5% |
-0.5% |
Mid Cap |
3.1% |
1.4% |
$25,197,605 |
2.2% |
-0.9% |
0.8% |
Small Cap |
4.6% |
1.2% |
$11,136,347 |
1.0% |
-3.6% |
-0.2% |
|
|
|
$1,166,783,327 |
|
|
|
Foreign Emerging
Equities by Style |
5/27/2007 |
8/15/2007 |
11/15/2007 |
11/15/2007 |
Change from
5/27 to 11/15 |
Change from
8/15 to 11/15 |
Value |
9.6% |
70.8% |
$68,452,607 |
5.9% |
-3.7% |
-64.9% |
Blend |
60.4% |
21.5% |
$1,010,220,765 |
86.6% |
26.2% |
65.1% |
Growth |
30.0% |
7.8% |
$88,109,955 |
7.6% |
-22.4% |
-0.2% |
|
|
|
$1,166,783,327 |
|
|
|
Foreign Emerging
Equities by
Cap/Style |
5/27/2007 |
8/15/2007 |
11/15/2007 |
11/15/2007 |
Change from
5/27 to 11/15 |
Change from
8/15 to 11/15 |
Large Cap Value |
7.2% |
70.3% |
$60,975,554 |
5.2% |
-2.0% |
-65.1% |
Large Cap Blend |
59.8% |
20.3% |
$999,884,964 |
85.7% |
25.9% |
65.4% |
Large Cap Growth |
25.4% |
6.7% |
$69,588,857 |
6.0% |
-19.4% |
-0.7% |
Mid Cap Value |
1.3% |
0.1% |
$3,633,470 |
0.3% |
-1.0% |
0.2% |
Mid Cap Blend |
0.5% |
1.1% |
$3,108,240 |
0.3% |
-0.2% |
-0.8% |
Mid Cap Growth |
1.3% |
0.3% |
$18,455,895 |
1.6% |
0.3% |
1.3% |
Small Cap Value |
1.0% |
0.3% |
$3,843,583 |
0.3% |
-0.7% |
0.0% |
Small Cap Blend |
0.2% |
0.1% |
$7,227,561 |
0.6% |
0.4% |
0.5% |
Small Cap Growth |
3.3% |
0.8% |
$65,203 |
0.0% |
-3.3% |
-0.8% |
|
|
|
$1,166,783,327 |
|
|
|
Bonds by Type |
5/27/2007 |
8/15/2007 |
11/15/2007 |
11/15/2007 |
Change from
5/27 to 11/15 |
Change from
8/15 to 11/15 |
Corporate |
45.8% |
51.9% |
$6,044,955,950 |
47.5% |
1.7% |
-4.4% |
Foreign |
1.0% |
1.1% |
$167,737,324 |
1.3% |
0.3% |
0.2% |
Municipal |
32.4% |
28.4% |
$3,700,764,023 |
29.1% |
-3.3% |
0.7% |
Unknown |
20.8% |
18.6% |
$2,821,657,345 |
22.2% |
1.4% |
3.6% |
|
|
|
$12,735,114,642 |
|
|
|
Corporate Bonds
by Maturity |
5/27/2007 |
8/15/2007 |
11/15/2007 |
11/15/2007 |
Change from
5/27 to 11/15 |
Change from
8/15 to 11/15 |
Short Term |
53.0% |
56.4% |
$2,945,513,741 |
48.7% |
-4.3% |
-7.7% |
Medium Term |
26.2% |
25.0% |
$1,814,284,728 |
30.0% |
3.8% |
5.0% |
Long Term |
20.8% |
18.6% |
$1,285,157,481 |
21.3% |
0.5% |
2.7% |
|
|
|
$6,044,955,950 |
|
|
|
Corp Bonds
by Quality |
5/27/2007 |
8/15/2007 |
11/15/2007 |
11/15/2007 |
Change from
5/27 to 11/15 |
Change from
8/15 to 11/15 |
Investment
Grade |
78.1% |
81.7% |
$4,779,431,444 |
79.1% |
1.0% |
-2.6% |
Medium
Grade |
21.1% |
17.6% |
$1,231,640,628 |
20.4% |
-0.7% |
2.8% |
High Yield |
0.8% |
0.6% |
$33,883,878 |
0.6% |
-0.2% |
0.0% |
|
|
|
$6,044,955,950 |
|
|
|
Corporate Bonds
by Maturity/Quality |
5/27/2007 |
8/15/2007 |
11/15/2007 |
11/15/2007 |
Change from
5/27 to 11/15 |
Change from
8/15 to 11/15 |
Short Term
Investment
Grade
|
45.9% |
50.6% |
$2,551,974,742 |
42.2% |
-3.7% |
-8.4% |
Short Term Medium
Grade |
7.1% |
5.8% |
$393,538,999 |
6.5% |
-0.6% |
0.7% |
Medium Term
Investment
Grade |
19.0% |
18.8% |
$1,421,247,134 |
23.5% |
4.5% |
4.7% |
Medium Term
Medium
Grade |
7.2% |
6.2% |
$393,037,594 |
6.5% |
-0.7% |
0.3% |
Long Term
Investment
Grade |
13.2% |
12.3% |
$806,209,568 |
13.3% |
0.1% |
1.0% |
Long Term Medium
Grade |
6.8% |
5.7% |
$445,064,035 |
7.4% |
0.6% |
1.7% |
Long Term High Yield |
0.8% |
0.6% |
$33,883,878 |
0.6% |
-0.2% |
0.0% |
|
|
|
$6,044,955,950 |
|
|
|
Muni Bonds
by Maturity |
5/27/2007 |
8/15/2007 |
11/15/2007 |
11/15/2007 |
Change from
5/27 to 11/15 |
Change from
8/15 to 11/15 |
Short Term |
27.8% |
28.2% |
$1,110,472,436 |
30.0% |
2.2% |
1.8% |
Medium Term |
30.2% |
30.6% |
$1,091,006,019 |
29.5% |
-0.7% |
-1.1% |
Long Term |
41.9% |
41.2% |
$1,499,285,568 |
40.5% |
-1.4% |
-0.7% |
|
|
|
$3,700,764,023 |
|
|
|
Muni Bonds
by Quality |
5/27/2007 |
8/15/2007 |
11/15/2007 |
11/15/2007 |
Change from
5/27 to 11/15 |
Change from
8/15 to 11/15 |
Investment
Grade |
82.0% |
83.7% |
$3,163,262,424 |
85.5% |
3.5% |
1.8% |
Medium Grade |
11.7% |
10.7% |
$369,301,549 |
10.0% |
-1.7% |
-0.7% |
High Yield |
6.3% |
5.6% |
$168,200,050 |
4.5% |
-1.8% |
-1.1% |
|
|
|
$3,700,764,023 |
|
|
|
Muni Bonds
by Maturity/Quality |
5/27/2007 |
8/15/2007 |
11/15/2007 |
11/15/2007 |
Change from
5/27 to 11/15 |
Change from
8/15 to 11/15 |
Short Term
Investment
Grade |
23.6% |
24.1% |
$927,183,741 |
25.1% |
1.5% |
1.0% |
Short Term
Medium
Grade |
4.2% |
4.2% |
$183,288,695 |
5.0% |
0.8% |
0.8% |
Medium Term
Investment
Grade |
25.6% |
26.4% |
$979,014,475 |
26.5% |
0.9% |
0.1% |
Medium Term
Medium
Grade |
4.6% |
4.2% |
$111,991,544 |
3.0% |
-1.6% |
-1.2% |
Long Term
Investment
Grade |
32.8% |
33.2% |
$1,257,064,208 |
34.0% |
1.2% |
0.8% |
Long Term
Medium
Grade |
2.9% |
2.4% |
$74,021,310 |
2.0% |
-0.9% |
-0.4% |
Long Term
High Yield |
6.3% |
5.6% |
$168,200,050 |
4.5% |
-1.8% |
-1.1% |
|
|
|
$3,700,764,023 |
|
|
|
Foreign Bonds
by Maturity |
5/27/2007 |
8/15/2007 |
11/15/2007 |
11/15/2007 |
Change from
5/27 to 11/15 |
Change from
8/15 to 11/15 |
Short Term |
19.2% |
14.8% |
$30,412,900 |
18.1% |
-1.1% |
3.3% |
Medium Term |
59.2% |
68.8% |
$106,495,798 |
63.5% |
4.3% |
-5.3% |
Long Term |
21.6% |
16.4% |
$30,828,626 |
18.4% |
-3.2% |
2.0% |
|
|
|
$167,737,324 |
|
|
|
Foreign Bonds
by Quality |
5/27/2007 |
8/15/2007 |
11/15/2007 |
11/15/2007 |
Change from
5/27 to 11/15 |
Change from
8/15 to 11/15 |
Investment Grade |
64.1% |
75.4% |
$130,033,934 |
77.5% |
13.4% |
2.1% |
Medium Grade |
28.4% |
13.4% |
$17,521,873 |
10.4% |
-18.0% |
-3.0% |
High Yield |
7.5% |
11.3% |
$20,181,517 |
12.0% |
4.5% |
0.7% |
|
|
|
$167,737,324 |
|
|
|
Foreign Bonds
by Maturity/Quality |
5/27/2007 |
8/15/2007 |
11/15/2007 |
11/15/2007 |
Change from
5/27 to 11/15 |
Change from
8/15 to 11/15 |
Short Term
Investment
Grade |
19.2% |
14.8% |
$30,412,900 |
18.1% |
-1.1% |
3.3% |
Medium Term
Investment
Grade |
33.7% |
57.5% |
$89,143,667 |
53.1% |
19.4% |
-4.4% |
Medium Term
Medium
Grade |
25.4% |
11.2% |
$17,352,131 |
10.3% |
-15.1% |
-0.9% |
Long Term
Investment
Grade |
11.1% |
3.0% |
$10,477,367 |
6.2% |
-4.9% |
3.2% |
Long Term
Medium Grade |
2.9% |
2.2% |
$169,742 |
0.1% |
-2.8% |
-2.1% |
Long Term
High Yield |
7.5% |
11.3% |
$20,181,517 |
12.0% |
4.5% |
0.7% |
|
|
|
$167,737,324 |
|
|
|
Display article as PDF for printing.
Would you like to send this article to a friend?
Remember, if you have a question or comment, send it to
. |
