Transaction Advisory, Investment Management

August 7, 2017

What’s Got Our Eye

Current RIA Trends

This week, we’re sharing some recent media on trends in the RIA space.  We’ve blogged about asset flows, bank interest in the RIA space, the plight of active management, and the fiduciary rule, but these articles represent a deeper dive into each of these topics.
  • "ETFs, ETPs Record Robust Asset Flows in First Half"by Michael S. Fischer of InvestmentAdvisor. The march of passive products continued full force in June, which saw record inflows of $63.6 billion to ETFs and ETPs around the globe, bringing year-to-date inflows to an impressive $347.7 billion, compared to net inflows of only $123.6 billion in the first half of 2016.
  • "Switching From Wirehouse to RIA"by Michael Kitces. Amidst the wave of advisors transitioning from wirehouses to independent firms, Kitces takes fifteen minutes to discuss the factors advisors should examine when considering making the transition.
  • "Banks Gobbling up RIAs as Consolidator Field Shrinks"by Janet Levaux of Investment Advisor. Though the year-to-date number of transactions in the RIA M&A space is up over 10% from 2016, fewer transactions were seen in Q2 compared to Q1 and the average AUM of RIAs involved in these transactions has fallen to $700 million, compared to an average of $1 billion over the last four years. DeVoe & Co. attribute this trend to the falling number of consolidators in the business.
  • "ETFs Now Have $1 Trillion More Than Hedge Funds"by Sarah Krouse of The Wall Street Journal. Assets in ETFs first surpassed investment in hedge funds two years ago and have accelerated ever since as investors continue to shun active products.
  • "Active Can Be Fiduciary; The Value of an Advisor"by Bob Veres of Inside Information. Bob discusses his vision of an active manager’s role in a post fiduciary rule investment environment as the enforcement date draws nearer. He also explores the many ways active managers can add value to clients outside of traditional money management.
If you have valuation questions regarding your RIA firm or if you would like to continue any of the above discussion further, give us a call.

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