According to figures from Access Data, total stock and bond mutual fund and ETF assets distributed by independent and regional broker/dealers and registered investment advisers (RIAs) grew at more than twice the rate compared with the wirehouse channel.
The data allows mutual fund managers small and large to identify the most profitable growth opportunities by channel, distributor, and product type.
Independent and regional broker/dealers and RIAs have become an increasingly important distribution channel for mutual fund and ETF firms, according to Frank Polefrone, senior vice president of Access Data. “By better understanding which channels are driving the most sales, firms can identify their best prospects and opportunities in this increasingly competitive environment,” Polefrone said.
Long-term mutual fund and ETF assets with independent and regional broker/dealers and RIAs accounted for more than $3 trillion, or approximately 40% of total long-term mutual fund assets held on the books of third-party distributors at the end of 2012. The assets held by independent and regional broker/dealers and RIAs grew 33% and 32% in 2012, respectively. This data, organized by product type and distribution channels, is among the unique detailed insights provided by Access Data’s Market Intelligence offering.
Access Data’s Market Intelligence offering provides a complete industry view, tracking more than 90% of long term mutual funds and ETF assets under management. Shored up by a partnership announced in 2012, with Strategic Insight, an Asset International company, Access Data offers industry asset and net new flow information for mutual funds and ETFs, segmented by distribution channels and financial intermediary firms. More than 80 fund and ETF firms now rely on Access Data for increased visibility into market share information by product type and distribution channel to uncover growth opportunities.
According to Avi Nachmany, executive vice president and director of research at Strategic Insight, the independent and regional broker/dealer and RIA channels attracted the highest net inflows into stock and bond mutual funds of any channel during 2012, with $67 billion and $56 billion of net deposits, respectively.
“Distribution data in the form of bottom-up granularity by broker/dealer and RIA firms offered by Access Data is now combined with Strategic Insight’s top-down analytics and integrated data,” Nachmany said. “Leveraging such details about fund distribution, which in many cases were not available previously, allows mutual fund managers small and large to identify the most profitable growth opportunities by channel, distributor, and product type. This new data transparency allows senior management to make better strategic decisions, and sales management to execute more profitably on that strategy.”
Access Data’s Market Intelligence offering delivers data transparency for omnibus accounts across the widest store of distributor data of long-term mutual fund and ETF assets distributed through third parties, including RIAs and independent broker/dealers. The solution tracks asset positions and net flows, calculates market share by channel, intermediary and product, performs peer group comparisons and analysis by Morningstar category, and estimates market penetration down to the firm and office location.
Mutual funds and ETFs can gain competitive market advantage in new market segments and create territory optimization plans that align sales resources to growth channels and regions. “Now, firms can confidently deploy resources where they will be most effective – and pinpoint their best opportunities to sell specific products,” Polefrone said.
Access Data Corp., a Broadridge Financial Solutions company, offers mutual funds and ETFs exclusive insight into assets and net flows to pinpoint the best opportunities in fast-growing market segments. More information is available at their website.