Oisin Breen

Brooke Southall and Keith Girard

With Ray Dalio gone and assets down, Bridgewater wants retail assets, but at arm's length; partner State Street will absorb hassles and risk for branding and fee opportunity

State Street

State Street Global Advisors

Bridgewater Associates

A look at the numbers shows that exchange traded funds are starting to move in lockstep with RIAs and vice-versa. RIAs invested $496 billion in ETFs in the 12-month period ended June 30, 2015 – that’s a $78 billion increase compared to the same period the year before. By comparison, the wirehouse channel added 20% fewer ETF assets, or $397 billion in the last year; granted, an amount that was $70 billion greater than its aggregate investment during the same 12-month period the year before, according to Broadridge Financial Solutions. RIAs that manage portfolios and make discretionary investment choices for their clients value ETFs because they provide advisors with easy access to market segments at a cheap price – an especially important factor for RIAs who are compensated on an asset-fee basis. Fee-based advisors appreciate ETFs’ tax efficiency, liquidity and broad exposure at low cost. Conversely, RIAs are a prized channel for ETF-makers like State Street, Invesco, PowerShares, Vanguard Group and BlackRock. ETFs are also a major ingredient in portfolios devised by robo-advisors -- essentially automated RIAs -- for the mass affluent who invest more than 90% of their assets using ETFs.

ETFs

The Westport, Conn., firm will repurpose, minus flourishes, an 'all-weather' strategy and get the Boston asset manager to do much of the heavy lifting.

With Ray Dalio gone and assets down, Bridgewater wants retail assets, but at arm's length; partner State Street will absorb hassles and risk for branding and fee opportunity

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With Ray Dalio gone and assets down, Bridgewater wants retail assets, but at arm's length; partner State Street will absorb hassles and risk for branding and fee opportunity

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