Broadridge Financial Solutions, Inc. (NYSE:BR), a provider of investor communications and technology solutions, has reported its mutual fund performance versus exchange-traded-fund (ETF) data for Q2 2015, according to a Broadridge statement.
Broadridge Financial utilizes a Fund Distribution Intelligence (FDI) tool – the utility helps aggregate a variety of information into a unified sales and asset data collection, tracking performance of both mutual funds and ETF assets. The FDI tool collects data on a monthly basis, which is then analyzed by respective channel, geography, etc.
Highlighting the quarterly figures were a standout performance across Broadridge’s retail channels, which continued to fuel (ETF) growth through Q2 2015. In particular, ETFs helped increase assets (in absolute US dollars) by $265 billion YoY since Q2 2014, vastly outpacing the $200 billion in long-term mutual fund (LTMF) assets distributed by other retail channels.
ETFs in the Driver’s Seat
Roughly 87% of ETF asset growth during the year ending June 30, 2015 were attributed to retail distribution channels having been led by registered investment advisors (RIAs) with total ETF assets of $496 billion. This corresponds to an increase of 18.2% YoY from just $418 billion over the same period a year before. Moreover, Broadridge’s wirehouse channel moved into second place behind RIAs with total ETF assets climbing to $397 billion, notching a 21.4% YoY increase from $327 billion over last year. Collectively, ETF assets are up $116 billion YTD 2015 across all retail channels at Broadridge.
Amongst the largest holders of ETFs during Q2 2015 were RIAs with $500 billion of ETF assets – overall, the growth of ETFs across the RIA channel has continued to overtake all other distribution channels. The best example of growth in quantifiable terms were equity products, which constituted 88% of the net increase in ETF assets over this period.
Additionally, Fixed income ETFs represented 15% of the overall net increase during the same period, with commodity ETF assets incurring a 4% net decline in assets. By extension, mutual funds could not capture the same growth margin as its ETF counterpart – long-term mutual fund (LTMF) asset growth came in at only $200 billion in Q2 2015.
According to said Frank Polefrone, Senior Vice President (SVP) of Broadridge’s Access Data product suite, in a recent statement on the performances, “The retail channels drove the growth of ETF assets with a 20 percent increase over last year ending June 30, and almost all of the increase came from retail channels – RIAs, independent broker-dealers, wirehouses and discount broker-dealers. Retail channels’ dominance for ETF asset growth was even more pronounced on a year-over-year basis, with all of the $116 billion of increased ETF assets coming from retail distribution channels.”
During Q2 2015, whereby acquiring its Fiduciary Services and Competitive Intelligence unit.
Back in May, Broadridge released its first tranche of financial metrics for the 2015 calendar year – , jumping 5% YoY from just $387 million during Q3 2014. In addition, total revenues swelled to $634 million during Q3 2015, up 5% YoY from $606 million in Q3 2014.
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