LAKE SUCCESS, N.Y.,
Oct. 26, 2016 /PRNewswire/ --
Registered investment advisors (RIAs) and independent broker
dealers (IBDs) gathered the majority of retail fund and ETF assets
in the first three quarters of 2016, according to data released
today by Broadridge Financial Solutions, Inc. (NYSE:BR) via its
Fund Distribution Intelligence. On a year to date basis ending
September 30th of 2016,
mutual fund and ETF products gained net new assets of $96 billion and $73
billion, respectively for the RIA and IBD channel. These two
independent channels outpaced the wirehouse channel, which had
combined net new assets of $9
billion.
"The combination of looming regulatory changes, such as the DOL
Rule, as well as investor preferences for fee based advice has
benefited independent advisory firms and the custodians that cater
to them," said Frank Polefrone,
senior vice president of Broadridge's data and analytics business.
"As a result of these market forces, the importance of independent
fee distribution channels to drive mutual fund and ETF asset growth
is more important than ever. The most successful firms are using
data analytics to better position their products, as well as
identify their best opportunities for growth within these
channels," continued Mr. Polefrone.
The majority of net new assets year to date for 2016 from all
retail channels – RIA, IBD, wirehouse and discount brokerage - are
coming from passively managed products. The net new asset flows on
a year to date basis for the RIA channel have been especially
slanted towards passive management at 80 percent compared to only
20 percent in actively managed products. This is in sharp
contrast to assets currently held in these channels, which today
are 30 percent passive and 70 percent active. The IBD channel
has experienced a similar shift to passive, with 77 percent of net
new assets to passive management versus 23 percent for actively
managed products. Both the RIA and IBD channels have also
experienced an increase use of institutionally priced share classes
and no-load funds, as the overall price of products becomes more of
an issue for fee based advisors.
In the first three quarters of 2016, overall net new assets for
ETFs increased by 9 percent to $2.4
trillion. The largest increase of ETF assets YTD for 2016
occurred in the RIA channel, with net new assets of $76 billion, up 14 percent YTD. The RIA
channel is by far and away the largest retail channel for ETFs with
$656 billion. Net new assets
for mutual funds were also up in the RIA market, with net new fund
assets of $20 billion (1.2 percent)
for total fund assets of $1.63
trillion. The combined growth of funds and ETFs makes
the RIA and IBD channels the largest retail channels with combined
fund and ETF assets of $2.29, and
2.27 trillion, respectively. The IBD channel has a different
mix of assets, with fewer assets in ETFs ($488 billion) and more in funds ($1.78 trillion).
Additional key findings include:
- ETF assets YTD ending September
2016 was up $205 billion, or
9.4 percent.
- Net new long term fund assets YTD ending September 2016 was up $173
billion, or 2.4 percent.
- Net new assets of ETFs for retail channels – RIA, IBD,
wirehouse and discount B/D – were up by $216
billion in the third quarter (15 percent), while net new
assets for institutional channels – private bank, bank and trust –
was down $11 billion (-1.5
percent).
- Net new assets for retail long-term funds were up by
$89 billion (1.3 percent), while
institutional long-term fund net flows increased by $84 billion (2.9 percent).
- Asset flows across retail channels were also slanted towards
institutional priced share classes, which increased by 5 percent
and no-load funds, up 7.4 percent, while the use of load funds was
flat.
Broadridge's Fund Distribution Intelligence comprises the most
complete sales and asset data collection in the industry, creating
transparency into more than $10
trillion of long-term mutual fund and ETF assets across a
majority of mutual fund distributors.
About Broadridge
Broadridge Financial Solutions, Inc. (NYSE:BR) is the leading
provider of investor communications and technology-driven solutions
for broker-dealers, banks, mutual funds and corporate issuers
globally. Broadridge's investor communications, securities
processing and managed services solutions help clients reduce their
capital investments in operations infrastructure, allowing them to
increase their focus on core business activities. With over
50 years of experience, Broadridge's infrastructure underpins proxy
voting services for over 90 percent of public companies and mutual
funds in North America, and
processes more than $5 trillion in
fixed income and equity trades per day. Broadridge employs
approximately 10,000 full-time associates in 16 countries. For more
information about Broadridge, please visit www.broadridge.com.
Media Contacts:
Linda
Namias
|
Joe
LoBello
|
Broadridge Financial
Solutions
|
Brainerd
Communicators, Inc.
|
+1
631-254-7711
|
+1
212-986-6667
|
linda.namias@broadridge.com
|
lobello@braincomm.com
|
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SOURCE Broadridge Financial Solutions, Inc.