RIAs and dually registered advisors had about 18.6% of the advisor market share in 2010, the research group says. But that share should hit 24.7% by late 2014.
The report added that there was about $1.2 trillion in RIA assets for client accounts managed by roughly 27,930 RIAs in 2010,. In 2011, that figure rose to about $1.4 trillion and 28,715, respectively.
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According to the report, this growth is being spurred by strong advisor recruitment, breakaway advisors leaving wirehouse and other traditional firms to create their own independent firms, and a growing client preference for RIAs.
"The RIA channel’s growth has outpaced the industry and is drawing increased interest by asset managers," according to Tyler Cloherty, associate director at Cerulli Associates. "There are a number of attractive distribution partners emerging."
"Growth of the RIA and dually-registered channels is likely to continue to accelerate due to advisor movement and client choice. Asset managers are expanding resources dedicated to the channel and anticipate future growth," Cloherty added.
The report suggests asset managers leverage their internal institutional sales resources to concentrate efforts on institutionally focused RIAs. Insight into manager selection and asset allocation procedures can support both institutional and retail sales, even though investment policies are likely to differ.
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