Broadridge Financial Solutions, Inc. (NYSE:BR), a provider of investor communications and technology solutions, has reported its latest tranche of statistics for exchange-traded funds (ETF) for Q3 2016, highlighting a healthy uptick in multiple channels, according to a Broadridge statement.
Broadridge Financial utilizes a Fund Distribution Intelligence (FDI) tool – the utility helps aggregate a variety of information into a unified sales and asset data collection, tracking performance of both mutual funds and ETF assets. The FDI tool collects data on a monthly basis, which is then analyzed by respective channel, geography, etc.
In particular, ETF and mutual fund products for the period ending September 30, 2016 secured net new assets of $96 billion and $73 billion respectively for the RIA and IBD channel. As such, these two independent channels managed to overtake and outpace the wirehouse channel, which accrued net new assets of $9 billion.
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In terms of ETFs, the first three quarters of the year ending September 30, 20016 also saw a growth of 9.0% YTD to $2.4 trillion. Looking closer at the data, the largest increases of ETF assets YTD during 2016 were evident in the RIA channel, which gained net assets of $76 billion, up 14.0% YTD.
This performance solidified the RIA channel as the largest retail channel for ETFs YTD, with $656 billion. Moreover, net new assets for mutual funds were also higher in the RIA market segment, with net new fund assets of $20 billion, or 1.2% YTD for total fund assets of $1.63 trillion.
According to Frank Polefrone, Senior Vice President (SVP) of Broadridge’s Access Data product suite, in a recent statement on the metrics: “The combination of looming regulatory changes, such as the DOL Rule, as well as investor preferences for fee based advice has benefited independent advisory firms and the custodians that cater to them.”
“As a result of these market forces, the importance of independent fee distribution channels to drive mutual fund and ETF asset growth is more important than ever. The most successful firms are using data analytics to better position their products, as well as identify their best opportunities for growth within these channels,” he added.