New York
31 October 2014
Reporter: Stephanie Palmer

Broadridge reports decrease in ETF assets


Broadridge’s Q3 figures revealed $9.2 trillion in distribution of long-term mutual funds and exchange-traded assets (ETAs), a slight decrease compared to Q2.

The third-party distribution figures were compiled by Access Data, an incorporated company of Broadridge Financial Solutions, who attribute the reduction to a general downturn in the market.

Frank Polefrone, senior vice president of Access Data, said: “The market downturn witnessed in September resulted in a slight decrease in long-term mutual fund and ETF assets under management by third party distributors during [Q3] of 2014, with the exception of independent broker-dealers.”

The independent broker-dealer (IBD) channel was the only one to increase its mutual fund and ETF assets, with $2.27 under management, an improvement of 5 percent on Q2 and a 15 percent increase year-to-date, compared to 2013.

Registered investment advisors (RIAs) accounted for $1.72 trillion in Q3, while wirehouse firms held $1.63 trillion and the private bank channel accounted for $1.43 trillion.

Across all third-party distribution channels, the year-to-date total of ETF assets was up almost 10 percent on 2013, with a total of $1.95 trillion.

“While asset changes among RIAs can be more fluid due to asset allocation changes made by advisors, the combination of long-term mutual fund and ETF assets among IBDs was more stable,” said Polefrone.

In terms of EFT assets under management, the private bank channel overtook the wirehouse channel with $357 billion year-to-date, an increase of 10 percent on the same period of 2013.

Polefrone added, “We’ve seen advisors across all channels increase the use of ETFs in their investment strategies. With advisors moving more to fee based compensation for managing portfolios rather than commission based product sales, the use of ETFs has captured a larger share of net new assets managed by advisors.”

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