Registered investment advisors (RIAs) increased long-term mutual fund and exchange-traded fund (ETF) assets under management by more than 12 per cent in the first half of 2014, according to Access Data, a Broadridge company.
This is the first time the channel grew at a faster pace on a percentage basis than all other retail channels, including independent broker-dealers (IBDs).
”As investors continue to gravitate toward independent advice models, we expect to see sustained growth in the RIA channel," says Frank Polefrone, senior vice president, Access Data. "For the first half of 2014, the RIA channel had the largest increase in absolute dollars for both ETFs and long-term mutual funds across all channels."
The RIA channel accounted for USD1.8 trillion in long-term mutual fund and ETF assets under management (AUM) in the first half of the year, an increase of almost USD200 billion over the end of 2013.
Total third-party long-term mutual fund and ETF assets under management (AUM) in the first half of 2014 increased by 9.8 per cent to USD9.3 trillion from USD8.5 trillion at the end of 2013.
Combined, the retail channels – registered investment advisors, independent/regional broker dealers, wirehouse broker dealers, and discount brokers – totalled almost USD6 trillion in AUM or 64 per cent of all third-party distribution of long-term mutual funds and ETF assets.