Fund Firms May Focus More On Independent Advisors

Established mutual fund companies will likely have to alter their sales practices as the growth of major brokerages slows and sales through registered investment advisors gain importance.

Reports of the death of the wirehouses have been greatly exaggerated, but their growth is nevertheless expected to slow in coming years, said Maurice Leger, senior vice president and director of research at Boston-based Financial Research Corp. Fewer platforms for mutual funds will be available amid more wirehouse mergers and acquisitions, such as the spinoff of the Smith Barney retail brokerage into a joint venture with Morgan Stanley.

The growth of the registered investment and independent advisor channels means that selling mutual funds will require new ways of thinking, Leger said...

Financial Advisor: Fund Firms May Focus More On Independent Advisors