NEW YORK: Today, the FT publishes the 2016 edition of the Financial Times 300 Top Registered Investment Advisers. The ranking of top U.S. RIAs was developed in collaboration with Ignites Research, a subsidiary of the FT that provides business intelligence on the investment management industry. The list represents an elite group of investment firms; the average FT 300 firm has been in existence for 22 years and manages $2.6 billion in assets.
The top advisers hail from 34 states and Washington, D.C. The choppy and unpredictable markets of 2015 took their toll, as 40 per cent of last year’s FT 300 firms do not appear on this year’s list, up from 30 per cent turnover in 2015.
This was the third annual FT 300 ranking, and it illustrated the growth of the RIA industry in assets and personnel. The average FT 300 firm has 25 employees involved in providing investment advice, from working with clients to researching funds This is an increase over 2015’s average of 21 employees per firm.
“While these RIAs are quirkier than Wall Street brokerages, they are becoming bigger and more institutional in nature. Of course, that’s both an outcome and a key ingredient in their success,” said Loren Fox, Director of Ignites Research and head of the FT 300 ranking.
Ignites Research created the methodology and ranked the advisers. Advisory practices reporting $300 million or more in assets under management were allowed to apply. The FT then scored candidate firms on six criteria: assets under management (AUM), AUM growth rate, years in existence, advanced industry credentials, online accessibility and compliance records.
This select group embodies some of the leading trends in the investment management industry. The firms focus on serving the wealthy: high net worth individuals (those with $1 million to $10 million to invest) account for 42% of the assets managed by the FT 300, and ultra-high net worth clients (those with more than $10 million) account for another 22% of their assets.
And the FT 300 rely heavily on packaged investment products: the single biggest portion of the FT 300’s combined assets, 34 per cent, are invested in mutual funds, while another 17 per cent are in exchange traded funds (ETFs).
The full report is available for viewing at this link.
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About Ignites Research
Ignites Research delivers original research and analysis on the retail mutual fund market from experienced analysts. With fresh content delivered straight to inboxes every week, its research covers the distribution and product topics that asset managers must understand to improve their business. Ignites Research is a sister site to the popular online newsletter Ignites, and is a subsidiary of the Financial Times.
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