Contents
I. Market Overview
II. Trends Impacting Growth
of the RIA Channel
III. Product Implications
IV. Mutual Fund Sales
Projections for the RIA
Channel Through 2014
Examining RIA Trends and Distribution Strategies
Overview
In its Examining RIA Trends and Distribution Strategies report, FRC investigates the factors
driving the growth of the RIA channel and explores the implications of the development of this
channel for asset management distribution and marketing strategies. Importantly, FRC
projects that the RIA channel represents the most attractive growth opportunity for mutual
fund gross sales.
Advisor Channel Opportunity Outlook: 2014
V. Implementing a
Distribution Strategy
VI. Best Practices for
Wholesaling Forces
Source: FRC, Mutual Fund Market Sizing (2010)
The report provides senior marketing, sales, and strategic planning executives with
critical competitive intelligence on the RIA market in a number of key areas:
• RIA business models and how they differ from other channels
• Perceptions of asset management firms and the products they provide
• Support services that RIAs desire or are currently using to obtain information about
mutual funds and other asset management products
• Criteria that RIAs use to screen and select mutual funds and the extent to which vehicles,
other than funds, are used
Data Sources:
• FRC’s proprietary IMPACT
database
• Interviews with RIAs
• Company press releases, Web
sites, and media reports
• Conversations with firms
employing RIA distribution
strategies
• Prior FRC RIA research
publications, (1998-2010)
Sample Finding—RIA as a Significant Distribution Channel
Although the RIA channel is geographically dispersed throughout traditional sales territories,
many product providers believe that RIAs represent one of the few remaining opportunities
for product sales growth. While the channel represents only 7% of the advisor population, it
controls approximately 11% of the wealth management industry’s client assets, and FRC
estimates the channel will be the largest source of mutual fund gross sales. Interest in the
channel, however, goes beyond mutual funds. Product providers from SMA sponsors to
insurance companies offering variable annuities have stepped up their efforts and/or altered
product designs to address the needs of the RIA community. Outsourcers continue to crop up
at an accelerating pace offering everything from portfolio accounting to compliance
management, while custody platforms continue to up the ante in terms of service offerings
to attract more RIA clients.