We’re sure it’s all because of their 401(k) business.
“While wirehouses still hold a substantial share of assets, RIAs are the growth story.”
So says Cerulli Associates in its latest report on institutional and retail markets and distribution strategies. The Boston-based research and consulting firm says that RIAs continue to win market share, growing at 6 percent, while wirehouses shrink.
It also reports that asset managers have identified registered investment advisors (RIAs), broker/dealer (B/D) mega teams, and home-office due diligence relationships as the groups with the largest pockets of opportunity to generate revenue and increase market share.
These channels are leading the trend toward more sophisticated, investment- and data-focused interactions that have traditionally been reserved for firms operating within the institutional space.
“In our survey of national sales managers, 67 percent rank increasing the technical skills of existing wholesalers to address more sophisticated advisor teams as the top priority,” says Emily Sweet, senior analyst at Cerulli. “We believe this expanding institutional influence in the retail market, especially in the areas growing most quickly, will continue for the foreseeable future.”
Cerulli’s latest report, U.S. Intermediary Distribution 2016: Evolving Roles in Distribution, focuses on the convergence of the institutional and retail markets and its influence over distribution strategies. In addition, the report analyzes trends related to advisor product use, portfolio construction, and allocation changes across industry segments.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
