RIA Asset Growth Outpacing Industry

Registered investment adviser (RIA) assets are expected to account for approximately one-quarter of industry asset marketshare by the end of 2014, according to Cerulli Associates.

“The RIA channel’s growth has outpaced the industry and is drawing increased interest by asset managers,” states Tyler Cloherty, associate director at Cerulli Associates. “There are a number of attractive distribution partners emerging.”

According to Cloherty, growth of the RIA and dually registered channels is likely to continue to accelerate due to adviser movement and client choice. “Asset managers are expanding resources dedicated to the channel and anticipate future growth,” he added.

According to Cerulli’s report, the projected RIA and dually registered combined markets will grow from 18.6% in 2010 to an expected 24.7% in 2014.

For advisers moving into the RIA channel, breaking away from a larger firm may result in decreased wholesaler coverage, Cerulli said. No longer included in a large office with multiple producers, the RIA firm must justify coverage upon its own assets. Trimmed wholesaler relationships create the opportunity to draw a greater percentage of the adviser’s assets. Asset managers should standardize transition efforts between channelized wholesalers to ensure relationship continuity for breakaway advisers.

Information about how to purchase the “State of the RIA Marketplace 2012” report is available by emailing CAmarketing@cerulli.com