- Expected to grow to 28% in 2020
- Besides RIAs, broker/dealer, mega teams, and home-office due diligence relationships are areas of opportunities
- Increasing the technical skills of existing wholesalers to address more sophisticated advisor teams is sales managers' top priority
New research from global analytics firm Cerulli Associates reports that asset managers have identified registered investment advisors (RIAs), broker/dealer (B/D) mega teams, and home-office due diligence relationships as the groups with the largest pockets of opportunity to generate revenue and increase marketshare. These channels are also leading the trend toward more sophisticated, investment- and data-focused interactions that have traditionally been reserved for firms operating within the institutional space.
"In our survey of national sales managers, 67% rank increasing the technical skills of existing wholesalers to address more sophisticated advisor teams as the top priority," says Emily Sweet, senior analyst at Cerulli. "We believe this expanding institutional influence in the retail market, especially in the areas growing most quickly, will continue for the foreseeable future."
Cerulli projects that within these areas of growth, the independent RIA and hybrid RIA channels combined will increase their asset marketshare from 23% in 2015 to 28% in 2020. "While wirehouses still hold a substantial share of assets, RIAs are the growth story," explains Kenton Shirk, associate director at Cerulli. "To build a relationship within an independent practice, wholesalers need to truly understand a firm's investment philosophy and decision-making process."
Cerulli's latest report, U.S. Intermediary Distribution 2016: Evolving Roles in Distribution, focuses on the convergence of the institutional and retail markets and its influence over distribution strategies. In addition, the report analyzes trends related to advisor product use, portfolio construction, and allocation changes across industry segments.