RIAs post record growth: Schwab survey

RIAs post record growth: Schwab survey
Markets and wealthier clients are driving up assets under management and profits.
JUL 02, 2015
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

Latest News

Why the off-channel comms problem is far from solved
Why the off-channel comms problem is far from solved

Despite a lighter regulatory outlook and staffing disruptions at the SEC, one compliance expert says RIA firms shouldn't expect a "free pass."

FINRA penalizes another broker dealer for social media miscues
FINRA penalizes another broker dealer for social media miscues

FINRA has been focused on firms and their use of social media for several years.

Advisor moves: LPL recruits Merrill alum, Raymond James adds defectors from Edward Jones and Janney
Advisor moves: LPL recruits Merrill alum, Raymond James adds defectors from Edward Jones and Janney

RayJay's latest additions bolster its independent advisor channel's presence across Pennsylvania, Florida, and Washington.

Cantor Fitzgerald to acquire hedge fund unit from UBS
Cantor Fitzgerald to acquire hedge fund unit from UBS

The deal ending more than 30 years of ownership by the Swiss bank includes six investment strategies representing more than $11 billion in AUM.

Navigating life’s big transitions for women clients
Navigating life’s big transitions for women clients

Divorce, widowhood, and retirement are events when financial advisors may provide stability and guidance.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave

SPONSORED The evolution of private credit

From direct lending to asset-based finance to commercial real estate debt.