RIAs post record growth: Schwab survey
Markets and wealthier clients are driving up assets under management and profits.
As many registered investment advisers mark 20 years in the industry, they’re also experiencing record growth, according to an annual study of 1,000 firms by The Charles Schwab Corp.
Around 42% of the firms have doubled their revenue since 2009, according to the study. At the same time, assets under management have increased by 75% for half of the firms.
All participating firms hold their assets in custody with Schwab and self-report data. Schwab does not independently verify the responses.
(Related insight: The biggest challenges RIAs are facing)
Strong equity markets have driven some of the growth, but firms are also adding more wealthy clients, according to the study. The number of new clients has jumped 24% in the past five years for half of the firms in the study, and the average account size is $1.9 million.
The results mirror growth at the large brokerage firms. At Morgan Stanley Wealth Management, the largest wirehouse by assets under management, assets under management grew 30% to over $2 trillion, from $1.56 trillion, in the same period, and annual revenue grew 34% to $12.55 billion from $9.39 billion, according to SEC filings.
Schwab Advisor Services’ Jon Beatty on RIAs’ opportunities
Learn more about reprints and licensing for this article.
