Charles Schwab’s Survey Reveals Trends in the Industry

  • Registered investment advisors (RIAs) experienced strong growth in 2023, according to Charles Schwab’s latest RIA benchmarking survey.
  • Assets under management increased by nearly 18% for the median firm to $542 million in 2023.
  • Since 2018, advisor AUM has seen a compound annual growth rate of over 13%.
  • 73% of firms plan to hire this year, with an estimated need for 70,000 new hires in the industry over the next five years.
  • Client retention remained steady at 97%, while acquiring new clients through referrals and business referrals were top priorities.
  • Recruiting staff and enhancing strategic planning ranked as other top priorities for firms.
  • Firms with $1 billion or more in AUM are looking to acquire another practice.
  • Top firms prioritize client feedback programs, leading to a 26% increase in existing client assets.
  • Many firms offer expanded services through flat fees and technology integration.

Registered investment advisors (RIAs) have seen significant growth, according to Charles Schwab’s latest RIA benchmarking survey. Assets under management increased by nearly 18% for the median firm to $542 million in 2023, with a compound annual growth rate of over 13% since 2018. Hiring remains strong, and firms are focusing on client referrals and recruiting new talent as top strategic priorities. Firms with $1 billion or more in assets under management (AUM) plan to acquire another practice. Top firms prioritize client feedback programs, leading to a 26% increase in existing client assets.

Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about the growth of registered investment advisors in 2023 based on a survey conducted by Charles Schwab. It includes relevant data such as assets under management, hiring trends, client retention rates, and strategic priorities for firms. The article also discusses various factors contributing to this growth, including upskilling talent, digital capabilities, and the use of technology in serving clients.
Noise Level: 7
Noise Justification: The article provides relevant information about the growth of registered investment advisors in 2023, including assets under management, hiring trends, and strategic priorities. However, it lacks a deep analysis or exploration of long-term trends or consequences of these developments. It also does not offer significant actionable insights beyond stating that firms are focusing on upskilling talent and enhancing digital capabilities.
Public Companies: Charles Schwab Corporation (SCHW)
Key People: Lisa Salvi (Managing Director of Business Consulting and Education at Charles Schwab Advisor Services)

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Financial Relevance: Yes
Financial Markets Impacted: The article discusses the growth of registered investment advisors (RIAs) and their assets under management, hiring trends, and strategic priorities such as acquiring new clients and expanding services through technology. This impacts financial markets by influencing the investment landscape and affecting the demand for financial services.
Financial Rating Justification: The article highlights the growth and strategies of RIAs, which are directly related to financial topics such as assets under management, hiring trends, and client acquisition. The impact on financial markets comes from the influence of these advisors on investment decisions and the overall investment landscape.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article. The text discusses growth and trends in the investment advisory industry.

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