Retail Brokerage Summer 2011 Quarterly Report

Shifting client demographics combined with reaction to the market events of 2008 dramatically increased investor interest in deposit and fixed income products. Nowhere has this been felt, and more keenly watched, than in the full-service brokerage channel. In recent years, the importance and—just as crucial—the composition of the deposit and fixed income pool of assets administered by the full-service brokerage channel has undergone significant change, as factors such as demographics, security, liquidity and advisor compensation have come into play. The current issue of The Retail Brokerage Report expands our customary reporting of the channel’s asset mix, providing an in-depth look into the various products that fall into the deposit and fixed income categories. Among the issues raised by the report are the trend in cash balances, the rise of high-interest savings accounts (HISAs), and the growing importance of GIC deposits. While changing the complexion of the full-service brokerage business, the growing weighting in deposits and fixed income vehicles is also having a profound impact on the economics of the business—at the firm and the advisor level.