Over half of fee-based financial advisors have invested more than 30% of clients’ assets in mutual funds and three-quarters of these advisors use index funds, according to new research.
Tiburon Strategic Advisors, Tiburon, Calif., published this in a summary of results from its survey, “Markets & Distribution Channels: Growth in the Self-Serve, Independent Advisors, & International Markets.” The report explores markets & distribution channels through which financial services products & services are delivered, including the self-serve, financial advisor, institutional, and international channels.
Institutional separate account managers have $8.0 trillion assets under management, up nearly 40% since 2005, the report observes. U.S. hedge fund assets under management have grown significantly to almost $2 trillion, up nearly 500% since 2000 but flat since 2006
Nearly half of fee-based financial advisors surveyed by Tiburon say that getting custodian referrals is the least important criteria when selecting a custodian. Also, more than three-quarters of fee-based financial advisors that earn less than 75% of their revenue from fees use Fidelity Investments.