RJ and Makay

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Direct-investment platforms are posing a growing challenge to investment advisors, and many advisors are not sufficiently aware of clients’ use of the platforms, according to Cerulli Associates.  From 2008 to 2010, assets in direct-investment platforms such as those offered at Fidelity, Vanguard and TD Ameritrade grew from $2.6 trillion to nearly $3.7 trillion, Cerulli data shows.

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Mutual fund company American Funds had outflows of $82 billion in 2011, or 9% of total assets, according to Morningstar.  Once a favorite of financial advisors, the fund group has had lagging performance for the past several years, and recent outflows represent an industry record, far more than the $28 billion of 2011 outflows at Fidelity investments.  Industry stalwart Vanguard, meanwhile, had inflows of $44 billion in 2011.

Exchange-traded funds (ETFs) — mutual funds that trade like stocks — continue to be a growing force in the securities industry, a new report by State Street Global Advisors shows.

Holdings in domestic ETFs rose 28% last year to $994.7 billion, says State Street. ETF assets grew as investors flocked to dividend/fundamental ETFs (up 99%), commodity ETFs (up 46%), and emerging markets ETFs (up 43%). In dollar terms, emerging markets ETFs gained $43.9 billion compared with $31 billion for commodity ETFs and $28.8 billion for fixed-income ETFs.