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

Edward Jones announces C-suite shakeup with eye toward next chapter
Edward Jones announces C-suite shakeup with eye toward next chapter

The leadership changes coming in June, which also include wealth management and digital unit heads, come as the firm pushes to offer more comprehensive services.

Harvard muni bonds a buy amid battle with Trump White House, Barclays says
Harvard muni bonds a buy amid battle with Trump White House, Barclays says

Strategist sees relatively little risk of the university losing its tax-exempt status, which could pose opportunity for investors with a "longer time horizon."

The great wealth transfer demands a wealth management revolution
The great wealth transfer demands a wealth management revolution

As the next generation of investors take their turn, advisors have to strike a fine balance between embracing new technology and building human connections.

Independent Financial Group taps industry veteran Keefe as new president, COO
Independent Financial Group taps industry veteran Keefe as new president, COO

IFG works with 550 producing advisors and generates about $325 million in annual revenue, said Dave Fischer, the company's co-founder and chief marketing officer.

Net Positive Consortium gains momentum with new members, first strategic partner
Net Positive Consortium gains momentum with new members, first strategic partner

Five new RIAs are joining the industry coalition promoting firm-level impact across workforce, client, community and environmental goals.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.