Packaged investment products continue to gain support as financial advisors increasingly offer mutual fund wrap programs to clients. According to a recent study, 37% of advisors holding their CFP designation invest an average of 22% of client funds in these investment structures, representing a 28% increase in advisors using wraps since 2004.

In addition, their anticipated usage rates are on the rise with 73% of current users planning to increase their usage of mutual fund wrap programs in the next one to two years.

The study also found that non-wrap mutual funds account for an average of 54% of clients’ assets for 88% of the CFP certified advisors polled.

In fact, 51% of respondents indicated that they would increase their usage of stand-alone mutual funds in the coming two years.

“Mutual funds are alive and well,” according to Jennifer Carver Wells, one of the study authors, “While advisors are moving toward packaged products, they are still using stand-alone funds to implement their investment strategies with clients.”

Other investment product areas expected to see increased usage in the next 1-2 years include separately managed accounts and insurance products. Products in decline include guaranteed products (GIC’s/term deposits), individual bonds & securities and hedge funds.

Published by Credo Consulting Inc. in partnership with Financial Planners Standards Council, the bi-annual study surveyed close to 1,500 advisors that hold the CFP designation.