Asset managers are gaining unprecedented insight into the performance of their retail distribution organizations. Just five years ago, they had visibility into only their own assets under management (AUM). It was difficult to know whether to attribute an increase (or decrease) in flows to the distribution organization or to a market shift.
But recently, companies like Market Metrics and Broadridge have introduced products that illuminate the total market and a firm’s market share by fund class, ZIP code and, in some cases, financial advisor or RIA. Market information like this can substantially refine how distribution organizations operate—but only if the information is applied correctly.