Cerulli Projects Market Share Gains for RIAs and IBDs

Registered investments advisors and independent broker-deals are projected to each enjoy a 1% gain in assets held by the distributions channel, a new report concludes.

Cerulli Associates, Boston, published this finding in a summary of results from a December, 2012 edition of The Cerulli Edge: U.S. Asset Management.

The report projects that independent broker-dealers and registered investment advisors will hold 18% and 14%, respectively, of assets in the distribution channel in 2013. This compares to year-end estimates of 17% and 13% held respectively by these two channels in 2012

By comparison, other distribution channels are expected to have flat or declining shares.

Cerulli projects the wirehouse channel’s market share—still the largest in the industry—will dip to 35% in 2013 from 38% in 2012.

The market shares of the regional channel (15% in 2013 versus 15% in 2012), dually registered advisors (7% versus 7%), insurance (5% versus 5%) and bank channel (5% versus 5%) are expected to be flat, the report adds.

When asked how they have changed their firm strategy since the financial crisis, survey respondents most often cited “broadening distribution efforts” (21%), greater emphasis on risk management (21%) and focusing on distribution efforts (19%).

Cited by fewer respondents were “greater focus on profitability” (8%), “greater emphasis on lean organization” (8%), “more hand-holding with clients” (7%), “greater focus on expense control” (5%), “greater focus on absolute return products” (4%), “other” and “added more conservative products to product line” (3%).

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