Currently, wirehouse market share is at 56% of total fee-based managed account assets, but Cerulli Associates predicts that market share will tumble to 50% by 2014.

It's not that wirehouses won't continue to capture assets and grow, said Cerulli Analyst Patrick Newcomb. Regional firms, such as Edward Jones, and banks, such as Chase, are starting to gobble up market share as they build out their fee-based platforms. For example, Edward Jones launched a mutual fund advisory program in 2008 that had already built assets of $44 billion as of the third quarter of 2010.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.