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Technology > Investment Platforms > Turnkey Asset Management

Raymond James Names Private Client COO, Boosts Profits

By Janet Levaux

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Raymond James named a chief operating officer for its Private Client Group, which includes 7,862 financial advisors: Kim Jenson, who has been COO of the firm’s employee channel, Raymond James & Associates, for the past two years.

“Kim has made meaningful contributions to our RJA private client business since joining Raymond James two years ago,” according to PCG President Scott Curtis. “With her experience and proven leadership, she will lead key strategic initiatives to grow and support our wealth management business.”

When Jenson was recruited from UBS in 2017 as a 30-year industry veteran, fan mail poured in from advisors, staff and even outsiders. “We were told we’d made a phenomenal choice — which is just fantastic to see — based on how many fans she has from her many years in the business,” said RJA President Tash Elwyn at the time.

At UBS, Jenson led the firm’s Chicago operations, after serving as chief of staff for the CEO of UBS Wealth Management Americas. Earlier, she was with Piper Jaffray.

“I’m excited to join Scott and the PCG leadership team supporting financial advisors across all of our divisions,” said Jenson, in a statement. “I look forward to contributing to the firm’s broader growth objectives and continuing our mission to be home to the profession’s best advisors.”

Earnings Results

On Wednesday, Raymond James said it beat earnings estimates with net income of $261 million, or $1.81 per share, for the quarter ending March 31.  Profits rose 7% from a year ago, and net revenues grew 3% to $1.86 billion.

“We are pleased with our results, as all four of our core segments generated record net revenues during the first six months of the fiscal year,” according to Chairman and CEO Paul Reilly.

“Moreover, we are well positioned entering the second half of the fiscal year, with records for client assets under administration of $796 billion, total number of Private Client Group financial advisors of 7,862, and net loans at Raymond James Bank of $20.1 billion,” he explained

Private Client Group

The unit’s assets under administration stand at $760.0 billion, up 9% from last year and 10% from the prior quarter; close to 50% of these assets are in fee-based accounts, or $378 billion.

With 7,862 advisors, Raymond James’ headcount is up 258 from March 2018 and up 47 from December 2018. This figure includes 4,670 independent contractors and 3,192 employee advisors.

“Despite the competitive recruiting environment, we experienced a healthy net increase in the number of financial advisors during the quarter, as our multiple affiliation options, client-centric culture and robust support and solutions offerings continue to resonate with existing and prospective advisors,” said Reilly.

Quarterly net revenues of $1.27 billion, though, were flat with the prior year’s results and were down 6% from the earlier period. Plus, pre-tax income of $132 million, fell 16% from a year ago and  20% from the prior quarter.

Asset management and related fees for the PCG rose 4% year over year to $638 million, but total brokerage revenues dropped 16% to $338 million.

The company says the latest results were hurt by “lower brokerage revenues and the market-driven decline of Private Client Group assets in fee-based accounts during the preceding quarter, as these accounts are predominantly billed based on balances at the beginning of the quarter.”

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Janet Levaux

@Think_JanetL

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