What You Need to Know
- Raymond James ended the second quarter with a total of 8,327 advisors.
- Advisor headcount grew 2% from a year ago and 1% from the end of the first quarter.
- Recruitment has picked up since the firm enhanced its recruitment packages to better compete with rivals.
Raymond James saw its overall advisor headcount increase by 94 advisors, or 1%, in the second quarter to 8,327 from the prior quarter after the firm improved its recruitment packages to be more competitive against rivals, according to Chairman and CEO Paul Reilly.
The record number of advisors at the end of Q2 was up by 179 over Q2 last year, representing a 2% increase, the company said.
“This represents a solid improvement over the prior quarter and reflects our strong retention and the continued strength of our recruiting pipelines across all of our affiliation options,” Reilly told analysts on an earnings call on Thursday.
“Our recruiting momentum in the independent side of the business continues to be strong,” he said. Meanwhile, “on the employee side, as we mentioned last quarter, in response to the increased recruiting packages by competitors, we enhanced our recruiting packages to be more competitive while also ensuring attractive returns to our shareholders,” he said.
The enhancements that Raymond James made to its recruiting packages on the employee side of the business have been “very well received by prospective advisors and that pipeline has recovered nicely,” he told analysts.
However, “while recruiting momentum in this business has increased greatly, employee advisor count is down slightly from the prior quarter, as improved recruiting was offset by a higher number of retirements where assets are typically retained at the firm, as well as the smaller training class,” he explained.
The number of advisors scheduled to join Raymond James, however, is “up significantly, not only in our employee channel, but across all of our affiliation options,” he told analysts.
Raymond James did not break out the number of advisors in its separate affiliation options.
Raymond James ended the quarter with record total client assets under administration of $1.09 trillion, up 40% from a year ago and up 6% from Q1.
“We also achieved records” for Private Client Group assets and fee-based accounts of $568 billion, a 48% year-over-year and 7% sequential improvement, which Reilly said will “benefit the third quarter,” and financial assets under management of $178.2 billion, up 39% from a year ago and up 5% from Q1.