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Laxman Pai, Opalesque Asia: U.S. professionally managed assets grew to $51.5 trillion as of 2019, up about 10% from a year earlier, according to a Cerulli Associates report.
The nation's managed assets are split between institutional client channels, at 53.8%, and the retail client channel, at 46.2%, but the share of the retail space has increased 5.2 percentage points since 2008, according to the latest "The State of U.S. Retail and Institutional Asset Management 2020" report.
The report revealed that retail and institutional distribution is increasingly intermediated by third parties. In retail client channels, the share of assets that move through the third-party distribution channel has increased from 72.8% in 2014 to 74.3% in 2019.
Similarly, the share of institutional client assets moving through third-party distribution has climbed from 45.6% to 53.6%. "Centralized influence points, such as investment consultants and broker/dealer (B/D) home offices, can help amplify distribution efforts as they provide a single point of contact for what is the potential of multiple client relationships," said Brendan Powers, associate director.
B/D-affiliated financial advisors are shifting to fee-based business models and increasingly adopting asset allocation model portfolios, emphasizing a focus on financial planning and delivering holistic advice, the report added.
"In this case, platform shelf space and model inclusion will be gatekept by the home office," a...................... To view our full article Click here
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