Schwab RIA Study Shows Advisors Moving Full Speed Ahead With Growth Plans

Determined to buck the nation’s trend toward sluggish economic growth, independent RIAs are charging ahead with plans to grow their businesses, says a Charles Schwab Advisor Service study released Wednesday, July 7.

The most striking findings of the Schwab 2010 benchmarking study show that 84% of RIAs plan to grow aggressively or moderately over the next five years and that 88% have bought technology with the objective of enhancing client service. In addition, net new asset flows from new and existing clients have remained positive, with the typical firm adding $6 million in assets, representing a 4% growth in assets under management.

“The independent advisor model continues to prove its staying power and appeal to customers as the industry emerges from a difficult past few years for the markets and economy,” said Bernie Clark, senior vice president and head of Charles Schwab Advisor Services, in a release. “Despite lower revenues and compressed profit margins, our independent investment advisor clients have remained profitable and continued to grow by focusing on serving their clients and adapting their businesses to focus more on efficiency and expense management.”