Portfolio - Investment Products

Broker-Dealers, RIAs Increase Mutual Fund Distribution

by: Hung Tran

Friday, March 15, 2013

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Total stock and bond mutual fund and ETF assets distributed by independent/regional broker-dealers and registered investment advisors grew at more than twice the rate compared to the wirehouse channel during 2012, according to newly released data from Access Data.

Specifically, long term mutual fund and ETF assets with independent/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/regional broker-dealers and RIAs grew 33% and 32% in 2012, respectively.

“Independent/regional broker-dealers and RIAs have become an increasingly important distribution channel for mutual fund and ETF firms. By better understanding which channels are driving the most sales, firms can identify their best prospects and opportunities in this increasingly competitive environment,” stated Frank Polefrone, Senior Vice President, Access Data.