Currently wirehouse market share is at 56% of total fee-based managed account assets, but Cerulli Associates predicts that managed account market share for wirehouses will tumble to 50% by 2014.
It’s not that wirehouses won’t continue to capture assets and grow, said Patrick Newcomb, an analyst at Cerulli Associates, in a phone interview on Thursday. But regional firms, such as Edward Jones, and banks, such as Chase Bank, are starting to gobble up market share as they build out their fee-based platforms. For example, Edward Jones launched a mutual fund advisory program in 2008 that had already built assets of $44 billion as of the third quarter of 2010. Prior to expanding into the mutual fund advisory space, Edward Jones was a legacy transaction-based firm, said Newcomb. “When they launched this advisory program it really was a huge hit among advisors who transitioned from commission-based mutual fund sales to a fee-based environment,” he said.
Register or login for access to this item and much more
All Bank Investment Consultant content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access