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Blog · Coverage and territory · Asset managers

Channel share per strategy: platform, wirehouse and RIA flows side by side

How an asset manager's distribution team measures net flows per strategy by channel from the transfer agent and platform data, sets each strategy's expected channel mix from its own peers in the range, and finds the strategy that is under-distributed in one channel while the range as a whole looks fine, without ever naming an end client.

The short answerNet flows per strategy by channel, platform, wirehouse, RIA, institutional and direct, come from the transfer agent and platform files with the intermediary identifier mapped to a channel. Each strategy's expected channel mix is the median across comparable strategies in the range. A strategy whose RIA share is a third of its peers' is under-distributed there, and the gap in flows, valued at the peers' mix, is the wholesaler's list of intermediaries in that channel who hold the peer strategies and not this one.

A head of distribution sees net flows per strategy and net flows per channel. The two tables do not show the cell where a strategy is missing from a channel that its sister strategies are in. The transfer agent file, with the intermediary mapped to a channel, does. This guide sets out channel share per strategy, the expected mix from the range's own peers, and the list that comes out.

The measure

Per strategy, per channel, per quarter:

Channel share = net flows in the channel ÷ net flows across all channels, or, where flows net near zero, assets in the channel ÷ total assets

And the assertion:

strategy net flows = Σ channels

An intermediary with no channel fails it and is listed.

The rows you need

  • Transactions or positions: strategy, intermediary, date, amount.
  • Intermediary master: intermediary, channel, and, where held, firm.
  • Strategy master: strategy, asset class, vehicle, launch date.

Intermediary and strategy identifiers only.

The expected mix

For each strategy, the comparable set is the other strategies of the same asset class and vehicle in the range with at least a stated tenure. The expected channel mix is the median share per channel across that set, from the manager's own data.

A worked example

Active equity mutual funds, this quarter, assets basis.

Strategy Platform Wirehouse RIA Institutional Reading
Peer median 34% 28% 22% 16%
S-101 36% 30% 20% 14% On mix
S-104 41% 38% 7% 14% Under in RIA
S-109 12% 8% 9% 71% Institutional by design

Strategy S-104 has a third of its peers' RIA share. At its assets, the gap to the peer mix is $180m of RIA assets, and the list is the RIA intermediaries that hold two or more of the peer strategies and none of S-104. Strategy S-109 is an institutional strategy and its mix is its own; the report says so rather than flagging it.

The gap and the list

Gap in channel = (peer share − strategy share) × strategy assets

And per intermediary in that channel:

Holds peer strategies, does not hold this one, ranked by assets in the peers

That is the wholesaler's call list for the quarter, with a reason on every line.

Where it goes wrong

Channel inferred from the firm name. A firm with both a wirehouse and an RIA arm. Map the intermediary identifier, not the name.

Omnibus not separated. Platform positions counted as direct. Give omnibus its own channel until look-through arrives.

Peer set across asset classes. A bond fund's mix says nothing about an equity fund's. Same class, same vehicle.

Flows on a quarter with redemptions netting to zero. Use assets for the mix when flows are small; state which.

Every quarter, per strategy per channel

Mapped once, the transfer agent and platform files, the intermediary master and the strategy master produce the mix, the peer norms, the gaps and the intermediary lists every quarter. Covirage builds this from the exports as they are. The asset managers page describes the setup, and the share of wallet guide covers the intermediary-level measure this sits above.

Questions people ask

Where does the channel come from?

From the intermediary identifier on each transaction, mapped once to a channel in a lookup the distribution team maintains. Platform omnibus positions are a channel of their own until the platform's look-through data assigns them further.

What are comparable strategies?

Strategies in the same asset class and vehicle type within the manager's own range: the other active equity mutual funds, say. Their median channel mix is the norm, and it is computed from the manager's own flows, not an industry survey.

Does this need client names?

No. Intermediary identifiers and strategy codes are enough. The end client never appears, and the intermediary can be a pseudonymised identifier as long as it is consistent across files.