Understanding the RIA Channel

What’s an RIA?

An RIA is a “registered investment advisor” registered with the SEC (U.S. Securities and Exchange Commission) or one or more U.S. States (Department of Commerce or Securities Agency) to do business as a financial advisor. RIAs manage client porfolios as fiduciaries and typically take fees based on assets managed for services versus commissions on trades or products sold.

TAMPs

Turn-Key Asset Managers

$480 billion in Total Assets Under Management

70 firms

Wealth Managers

$2.237 Trillion in Total Assets Under Management

12,802 firms

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Hybrids

RIAs & Broker / Dealer Affiliates

$46 Trillion in Total Assets Under Management

4,067 firms

Hedge Funds

$42.7 trillion in Total Assets Under Management

2,684 firms

Asset Managers

$42.5 Trillion in Total Assets Under Management

3,103 firms

Aggregate Assets of Independent Wealth Managers

$ 2.237 Trillion }

Total Assets Under Management (AUM) of independent wealth managers.

7,902,715 }

Total Accounts managed by independent wealth managers.

$174,768,279 }

Average Wealth Management Firm Size

Total Discretionary Assets Under Management of independent wealth managers.

{ $ 1.662 Trillion

Total Discretionary Accounts managed by independent wealth managers.

{ 4,761,524

Average Wealth Management Discretionary Asset Firm Size

{ $129,857,777

The Number of Independent Wealth Management Firms

by AUM buckets

2,973

1,066

850

667

560

1,807

993

609

898

521

1,494

364

RIA-infograph-22-1024x626

$0-$5 million

$5-$10 million

$10-$15 million

$15-$20 million

$20-$25 million

$25-$50 million

$50-$75 million

$75-$100 million

$100-$150 million

$150-$200 million

$200-$1 billion

Greater than $1 billion

Where’s the Money?

Independent Wealth Management Firms

based on Aggregate Assets by firm size

  • Firms 0 to $50m
  • Firms $50m to $100m
  • Firms $100m to $200m
  • Firms $200m to $500m
  • Firms $500m to $1b
  • Firms $1b to $2b
  • Firms $2b to $3b
  • Firms > than $3b

1/3

of all assets reside with firms over

$3 billion

Wealth Manager Asset Growth

based on total assets under management

Wealth Manager Assets Have

Doubled in Past 5 Years.

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The Number of Independent Wealth Management Firms

by AUM buckets

New Registered Investment Advisors (RIAs)

RIA-infograph-5-1024x688

New Wealth Management firms

RIA-infograph-61-1024x688

ETF Usage by RIA Firms

Total U.S. ETF Assets = $2 Trillion

$755B or roughly 40% of all ETF assets are reported by firms in RIA Database.

ETF Assets for RIA / Wealth Managers:

$91 Billion

ETF Assets for Asset Managers:

$276 Billion

ETF Assets for Hedge Funds:

$260 Billion

ETF Assets for Broker/Dealers:

$128 Billion