Wirehouses are set to lose the most clients, while RIAs and dually registered advisors will be the greatest recipients, according to the research firm’s latest report.
In 2009, $800 billion is expected to be transferred as advisors change firms. Wirehouses will lose the most, while RIAs and hybrid advisors should be the greatest recipients of this money in motion, Cerulli says.
Cerulli estimates that wirehouses’ share of assets under management could fall from 47.7 percent at year-end 2008 to 40.7 percent at year-end 2012.
Meanwhile, the independent channels (independent broker/dealers, RIAs and dually registered) are projected to account for 39.3 percent of assets under management by 2012, nearly equaling the assets at wirehouses.
“While wirehouses are — and will continue to be — the distribution powerhouses for asset managers, the independent channels should garner more attention as they continue to gain ground with more advisors migrating towards independence,” explains Scott Smith, the report’s lead analyst.