Independent broker-dealers and registered investment advisors were the largest distribution channels for long-term mutual funds and ETFs last year, according to a new report from Access Data.
Access Data, a Broadridge Financial Solutions company, reported Monday that total third-party ETF and long-term mutual fund assets under management had increased to $8.8 trillion in 2013, a 23% rise over 2012.
Specifically, 2013 data showed the following:
- IBDs led in overall third-party distribution of long-term mutual funds and ETFs with $2.1 trillion in assets under management, a 23% increase over the previous year.
- RIAs were the second largest channel with slightly more than $1.6 trillion in fund and ETF assets, a 17% increase over 2012, followed by the wirehouse channel with $1.6 trillion.
- Total assets under management for retail third-party distribution of long-term funds and ETFs represented 65% of all third-party distribution, or $5.7 trillion.
- The institutional channels—private banks, national banks and trust companies—had combined assets under management of $3.1 trillion, or 35% of third-party distribution.
The report said the overall growth of the IBD channel, which has consistently ranked No. 1 in assets under management versus all other distribution channels from 2011 to 2013, was driven by long-term mutual funds with an increase in assets of 24% in 2013.
This compared with an increase in long-term mutual funds for the RIA and wirehouse channels during 2013 of 13% and 14.6%, respectively.
What Your Peers Are Reading
Within the RIA channel, ETFs were driving growth as demonstrated by a 33% increase in 2013.
ETF assets for the RIA channel also outpaced the IBD and wirehouse channels last year; these experienced an increase in ETF assets of 18% and 25%, respectively.