Recent Trends in Asset Management

Industry Trends

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. 

Switching From Wirehouse to RIA – AUM And Revenue Requirements To Break Away

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.

RIAs Poised to Land Wirehouse Recruits

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.

Advisor Platform Comparison: Wirehouse vs RIA Aggregator vs Independent RIA

By Aaron Hattenbach

In 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.

UBS is ‘Constantly Approached’ About Asset-Management Unit

By Patrick Winters

This 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.

Path to Growth: Why RIA firms leverage M&A as a growth strategy

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.

Why Critics of Passive Investing Are Wrong

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.