Happy New Year. Below are a few of the key trends from last year and our outlook for 2011 and beyond.
Strategic Insight clients of course can access the full report online.

• Strategic Insight’s 25th Anniversary: looking back at two and a half decades of fund research and looking forward to 2011 and beyond.

• Vote of confidence: over $900 billion in net flows to bond and stock funds globally in 2010, mostly around risk aversion and income needs, and a business focus back-to-basics.

• Seismic shifts between asset classes and regions since the crisis; for 2011, equity growth vs. bond challenges, asset allocation solutions around a more diversified “core”.

• Top ten investment categories in 2010 included Global, Emerging Markets, Asia Pacific, “balanced” and absolute return themes.

• Globalization of asset allocation, investment management and distribution partnerships – thought leadership around “metatrends”, the re-evaluation of asset management brands.

• Acceleration of leadership turnover: 0.5% of funds accounted for 95% of 2010 long-term net flows worldwide. Changing business models for blockbuster products to accommodate a changing distribution landscape.

• Multi-convergence: between traditional funds and alternatives, between individual and institutional, between East and West.

• Top five 2011 focus areas for institutions and global distributors based on proprietary Strategic Insight surveys: investment solutions, absolute return, client service, thought leadership and better digital information delivery.

• Mutual funds gained, but wasted the crisis by not focusing more on their competitive advantages; multi-convergence and regulatory changes are both threat and opportunity.