Fuse Blog

Ascent of Completion Funds

  • FUSE expects an overall improvement in demand across Taxable and Municipal Bond strategies in 2023 among mutual funds and ETFs, which will likely further prop up demand for Fixed Income SMAs as well.
  • Given the difficulty in actively managing individual SMA portfolios, completion funds provide investors with an attractive way of achieving the diversification and access across sectors/credit quality that normally would be more challenging.
  • As noted in the table, completion funds with more than $1 billion in assets as of December 2022 have experienced growth over the past two years. The largest fund, AB Municipal Income Shares, which is exclusively available to AB SMA clients, witnessed an approximately 40% increase in AUM since year-end 2020.

Growth of Completion Funds with More than $1B in AUM, 2020 – 2022 ($M)

2.2.23 Blog
Source: FUSE Research Network, Morningstar