This week, we’re sharing some recent media on trends in asset management, including the breakaway broker phenomenon, M&A activity, and the ongoing shift towards passive products. Most industry observers foresee a continued flight from traditional wirehouses, an uptick in M&A activity spurred by increasing competitive pressures, and further fee pressure from passive products as we move towards a new equilibrium.
By Michael Kitces
We wrote
last month about advisors shifting from traditional wirehouses to independent RIAs, and
this post by industry consultant Michael Kitces offers a deep dive into the economics of the switch from an advisor’s perspective.
By Dan Jamieson
Going independent doesn’t have to mean starting from scratch: wirehouse advisors are increasingly a recruiting channel for existing independent RIAs,
according to this piece by industry observer Dan Jamieson.
By Aaron HattenbachIn this guest post which appeared on Michael Kitces’ blog, industry insider Aaron Hattenbach offers perspective gleaned from his own experience on the relative merits of wirehouses, RIA aggregators, and fully independent RIAs, each of which he has worked at.
By Patrick WintersThis article from Bloomberg underscores the potential for a new wave of deals in the asset management space: UBS Chief Financial Officer Kirt Gardner indicates that UBS is “constantly approached” regarding its asset management unit.
By Christopher V. Gunderson
Increasing operational and compliance costs combined with downward fee pressure may be forcing consolidation in an industry where
historically M&A activity has been sparse: according to
a survey by InvestmentNews, 44% of RIAs plan to pursue M&A deals over the next five years.
By: Kent Smetters
Somewhere there’s equilibrium between active and passive asset management, and wherever that equilibrium may be, we are not there yet according to
this WSJ piece by University of Pennsylvania Wharton School Professor Kent Smetters.
