Money Managers Typically Target Big RIAs But A Cerulli Report Says The Sweet Spot May Be With Smaller Firms

But money managers particularly like firms with $1 billion or more in assets. The problem is, these firms are large enough to produce their own research and so, don’t necessarily need asset managers as much. Smaller firms have smaller staffs and fewer internal resources.
Since they are also more active in the wares asset managers produce, it makes sense that asset managers need to shift their focus. Smaller firms also like building relationships with wholesalers. Once asset managers begin to realize how valuable these relationship might be, smaller firms may also be able to get more support from the managers.
Sometimes managers will come into RIAs and meet with clients, offer more research support, or even sponsor a client event. Currently, however, these types of support are mostly done with big ticket items like annuities or other complex investment strategies.
As the RIA market grows, so the smaller firms may grow. Asset managers may be overlooking these firms at their peril.


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