LAKE SUCCESS, N.Y.,
April 28, 2016 /PRNewswire/
-- Independent broker dealers (IBDs) and registered investment
advisors (RIAs) continued to invest in passive investment products,
increasing net new assets in exchange-traded funds (ETFs) by more
than $13 billion in the first quarter
of 2016, according to data released today by Broadridge Financial
Solutions, Inc. (NYSE: BR) via its Fund Distribution
Intelligence. Individual investors also increased their
holding of ETFs with an additional $3.7
billion of net new ETF assets coming from the discount
brokerage channel during the first quarter. The wirehouse channel
was the only retail channel with negative net new ETF flows during
the first quarter, with a decrease of $13
billion.
Broadridge's Fund Distribution Intelligence now measures ETF and
long-term mutual fund net new assets by channel, which enables us
to better gauge asset velocity (movement of assets within a defined
period) for third party distributors. While long-term mutual funds
and ETF net new assets were only down slightly during the first
quarter, Broadridge measured asset movement throughout the three
month period. The RIA channel, as an example, ended the quarter
relatively flat in overall net new assets while experiencing
monthly asset fluctuation three to four times higher than in the
past four quarters.
In the first quarter of 2016, overall ETF assets increased by
2.4 percent to $2.3 trillion, but net
new assets decreased by 0.68 percent, a decrease of $15 billion. Net new flows for long-term mutual
funds showed a similar pattern, with total assets from third party
financial intermediaries increasing by 1 percent to $7.3 trillion in the first quarter, but with a
decrease of net new assets of $11
billion. The IBD channel saw the biggest decline in
long-term funds, decreasing by nearly $37
billion in net new assets in the first quarter, indicating
that much of the gain in ETFs was likely coming from mutual
funds.
"The trends we've been following for the past several quarters
have continued – including the increased use of ETFs and passive
investment products across retail distribution, as well as the
growth of assets managed by independent advisors. Our analysis
indicates the volatility in the markets during the first quarter of
2016 resulted in increased velocity of money being reallocated
within client portfolios," said Frank
Polefrone, senior vice president of Broadridge's data and
analytics business.
Additional key findings include:
- Net new assets of ETFs for retail channels – RIA, IBD,
wirehouse and discount B/D – were up by $3
billion in the first quarter, while net new assets for
institutional channels – private bank, bank and trust – were down
by $18 billion.
- Net flows for retail ETFs were up by $3
billion versus a decrease of $43
billion for retail long-term funds.
- Net new flows for retail long-term funds were down by
$43 billion, while institutional
long-term fund net flows increased by $32
billion.
- Retail ETFs saw increased assets across fixed income,
alternative and commodity products, while equity, convertibles and
allocation product assets were down.
- Retail channels saw decreased assets in all major investment
categories during the first quarter, with the exception of
commodities.
Broadridge's Fund Distribution Intelligence comprises the most
complete sales and asset data collection in the industry, creating
transparency into more than $9
trillion of long-term mutual fund and ETF assets across a
majority of mutual fund distributors.
About Broadridge
Broadridge Financial Solutions, Inc. (NYSE:BR) is the leading
provider of investor communications and technology-driven solutions
for broker-dealers, banks, mutual funds and corporate issuers
globally. Broadridge's investor communications, securities
processing and managed services solutions help clients reduce their
capital investments in operations infrastructure, allowing them to
increase their focus on core business activities. With over
50 years of experience, Broadridge's infrastructure underpins proxy
voting services for over 90 percent of public companies and mutual
funds in North America, and
processes on average $5 trillion in
fixed income and equity trades per day. Broadridge employs
approximately 7,400 full-time associates in 14 countries.
For more information about Broadridge, please visit
www.broadridge.com.
Media
Contacts:
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Linda
Namias
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Maggie
Nolan
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Broadridge Financial
Solutions
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Brainerd
Communicators, Inc.
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+1
631-254-7711
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+1
212-986-6667
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linda.namias@broadridge.com
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nolan@braincomm.com
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SOURCE Broadridge Financial Solutions, Inc.