The Cerulli report noted that national and regional B-Ds have grown their assets under management the most over the past five years, with a compound annual growth rate (CAGR) of 6.5%. That was followed by retail bank B-Ds, which grew at a five-year CAGR of 5%. The national and regional B-D channel also saw an increase in total AUM market share from 15.9% in 2013 to 16.8% in 2018.
Advisors, on average, control $66 million in assets under management (AUM), which is up from $51 million in 2013, representing a five-year CAGR of 5%, the report noted. Most productive are wirehouse advisors, controlling on average $147 million per advisor, which is 124% more productive than the industry average. In contrast, insurance B-D advisors are the least productive, with an average of $12 million per advisor, which is 82% less productive than the industry average.
Cerulli’s research also confirmed a general trend that it has observed about advisors, who at a low but consistent rate have been leaving traditional B-D channels to join RIA channels, where many advisors see a greater opportunity for independence and business ownership.