Boston, MA, April 19, 2010 – A new report from Aite Group examines changes in market share, asset flows, and advisor movement at wirehouses, independent broker/dealers, independent registered investment advisors, and online brokerage firms at both firm and segment levels. This follow-up to Aite Group's July 2009 report, New Realities in Wealth Management: Ready for the Sea Change?, also reports on trends in the adviser community based on an Aite Group survey of 402 financial advisors, completed in Q4 2009.
The financial crisis of 2008 and 2009 continues to play out in the global wealth management industry. Wirehouses, whose net asset inflows and outflows have fluctuated wildly over the past couple of years, are beginning to stabilize. The year ahead will prove to be a pivotal one for the industry, depending on the success of the wirehouses' integration efforts and on competing firms' ability to continue winning assets and advisors from wirehouses.
"While the situation at wirehouses has certainly stabilized over the past year, our survey shows that only 15% of wirehouse advisors currently have no plans to break away from their employer," says Alois Pirker, research director with Aite Group and co-author of this report. "While switching firms has slowed in the last couple of quarters, a large share of wirehouse brokers is prepared to jump ship should their firm take another reputational hit. Even as positive market performance restores stability, the major players in the industry continue to face serious competitive threats."
Doug Dannemiller, senior analyst with Aite Group and co-author of the report, adds, "Competing channels are still gaining market share from wirehouse firms. The window of opportunity for these firms to further increase market presence is starting to close, however, as wirehouses stabilize their brokerage operations. It is important that these players fine-tune their capabilities in order to successfully compete with wirehouses after the dust from the crisis has settled."
The report references wirehouse firms, RIA custodians, correspondent clearing firms, self-clearing retail brokerage firms, and online brokerage firms including Ameriprise, Bank of America/Merrill Lynch, Charles Schwab, E*Trade, Edward Jones, Fidelity Investments, LPL Financial, Morgan Stanley Smith Barney, National Financial, Pershing, Raymond James, RBC Wealth Management, State Street, TD Ameritrade, UBS, and Wells Fargo Advisors.
This 42-page Impact Report contains 32 figures. Clients of Aite Group's Wealth Management service can download the report.