
Focusing on fundamentals helps advisors succeed
Results from the 2019 RIA Benchmarking Study from Charles Schwab show continued long-term growth for RIA firms.
Advisory firms strengthen their ability to thrive across changing market conditions by concentrating on business fundamentals like strategic planning, client experience, operational excellence, communicating value, and talent development. These key business areas form the pillars of the Schwab Advisor Services™ Guiding Principles for Advisory Firm Success, a foundational framework that helps registered investment advisors (RIAs) address the complexities of growing their firms and creating enduring enterprises.
Findings from the 2019 RIA Benchmarking Study from Charles Schwab reinforce the importance of these business fundamentals. In this data-rich site, you’ll find key insights into how advisors are evolving their businesses to ensure long-term success—by offering more services, increasing operational efficiency, and building paths to ownership for employees.
“Schwab’s Benchmarking Study confirms the steps we’ve taken to improve the health and strength of our business, and helps us identify areas where we should devote more attention and resources.
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RIA 5-year growth measures
RIA 5-year growth measures
AUM
Revenue
Clients
Evolution of services in the RIA offer
Operational enhancements and increased productivity
Sources of new client asset growth in 2018
Firms offering equity to non-founders and financing options
Firms offering equity to non-founders and financing options
Firms offering equity by firm size
Equity financing options by firm size
Participate in 2020
Participate in 2020
Leading your firm to greater success amid increasing competition takes insights and data to help you make strategic decisions with confidence. The RIA Benchmarking Study from Charles Schwab is the largest of its kind focused on independent RIAs, with the 2019 study including data from 1,310 RIA firms with $1.1 trillion in assets. Participating firms can compare hundreds of performance measures across their peer group to track progress against strategic goals and glean powerful insights to identify opportunities for growth.
Contact Schwab Advisor Services about taking part in the 2020 RIA Benchmarking Study or visit our resource page.
About the 2019 RIA Benchmarking Study from Charles Schwab
Schwab designed the RIA Benchmarking Study to capture insights in the RIA industry that are based on study responses from individual firms. The 2019 study provides information on such topics as assets and revenue growth, sources of new clients, products and pricing, staffing, compensation, marketing, technology, and financial performance. Fielded from January to March 2019, the study contains self-reported data from 1,310 firms that custody their assets with Schwab Advisor Services and represent $1.1 trillion in assets under management (AUM), making this the leading study in the RIA industry. This self-reported information provided by individual advisory firms was not independently verified. Participant firms represent various sizes and business models. They are categorized into 12 peer groups—7 wealth manager groups and 5 money manager groups—by AUM.
Data represents median results by peer group (based on AUM) unless otherwise noted. Past performance is not an indicator of future results.
1. Median results and compound annual growth rates (CAGR) over the 5-year period from 2014 to 2018 by peer group (based on AUM). Results do not include those firms that experienced a merger or added a new partner during this time period.
2. Results from the 2015 and 2019 RIA Benchmarking Studies from Charles Schwab. Results for all firms with $250 million or more in AUM.
3. Fastest-growing firms are the top 20% of firms with $250 million or more in AUM based on 5-year net organic compound annual growth rate. Net organic growth is the change in assets from existing clients, new clients, and assets lost to client attrition before investment performance is taken into account, and it excludes the growth from acquisitions, divestitures, and advisors joining or leaving a firm with assets.