As a group, registered investment advisors (RIA) stood apart from five other advisor distribution channels in experiencing growth between 2004 and 2012, according to a new report.
Cerulli Associates discloses this finding in the December 2013 edition of “The Cerulli Edge: U.S. Asset Management Edition.” The report examines the RIA channel’s evolution, how third-party vendor platforms reach advisors who value flexibility and emerging strategies respecting exchange-traded funds.
The RIA channel grew at an annualized 8 percent rate between 2004 and 2012. In contrast, regional broker-dealers, insurance broker-dealers and independent broker-dealers saw their numbers contract by 1.2 percent, 1.4 percent and 1.4 percent, respectively.
Also suffering declines during the eight-year period were bank broker-dealers (down 1.9 percent) and wirehouses (off 2.5 percent). In the aggregate, the report observes, all advisor channels contracted 1.2 percent between 2004 and 2012.