Distribution channel effects on advisor managed investment performance

Authors

  • Jason E. Heller Coastal Wealth
  • Benjamin F. Cummings Department of Financial Planning & Analytics, Utah Valley University
  • Jason Martin The American College of Financial Services

DOI:

https://doi.org/10.61190/fsr.v30i2.3479

Keywords:

Investment performance, Compensation puzzle, Independent Broker/Dealer, Registered Investment Advisor, Cognitive Load Theory

Abstract

This study focuses on the effects that business models have on advisor managed portfolio per- formance by attempting to determine if advisors at Registered Investment Advisory (RIA) firms pro- duce higher net investment results compared with advisors employed at dually registered Independent Broker/Dealer (IBD) firms. Using data from one of the largest investment advisory plat- forms in the United States, we found qualified supporting evidence that advisors at RIAs outper- formed advisors at IBDs in higher-risk portfolios through the use of Turnkey Asset Management Programs and Unified Managed Accounts.

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Published

2022-06-30

How to Cite

Heller, J. E., Cummings, B. F., & Martin, J. (2022). Distribution channel effects on advisor managed investment performance. Financial Services Review, 30(2), 145–164. https://doi.org/10.61190/fsr.v30i2.3479

Issue

Vol. 30 No. 2 (2022): Summer 2022

Section

New Original Submission

License

Copyright (c) 2022 Academy of Financial Services

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