While the wirehouses experienced outflows of $74 billion due to advisor movement in 2012 — mainly in favor of the dually registered channel, which is anticipated to add 3.3% market share by 2016 — the wirehouses are still expected to retain their lead in assets, according to Cerulli Associates.
But that advisor migration is expected to grow independent channels to 38% of asset market share through 2016, according to Cerulli’s report, Intermediary Distribution 2013: Managing Sales Amid Industry Consolidation.
“We anticipate the registered investment advisor and the dually registered channels are going to be the beneficiaries of advisor movement,” said Kenton Shirk, associate director at Cerulli.
Indeed, Cerulli has predicted that independent and dually registered RIAs will account for 26% of all retail advisory assets by the end of 2016.
“Across the advisor industry, there is a strong desire for independent operation and ownership,” Shirk says. “The draw of autonomy, combined with the trend toward fee-only relationships, has enhanced the appeal of the independent channels.”