This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

(Graphic: Charles Schwab)

Stocks in this article: SCHW

Although client referrals and COI are a primary channel for RIA growth, according to the study, some firms are also looking to non-organic means to achieve growth – specifically, by acquiring another firm. Approximately 25 percent of RIAs in the $100 million to $1 billion AUM segment indicated they are actively seeking to acquire another firm. Among firms managing $1 billion or more in AUM, 34 percent are actively looking to acquire another firm. Among the fastest growing firms, 1 in 5 reported plans to acquire another RIA while 1 in 3 of all other firms is looking to acquire.

“With the compelling benefits of increased scale, it’s not surprising that RIAs are eager to move to the next level with their business,” said Beatty. “Whether through organic or non-organic means, the path to growth is a strategic decision that firms are weighing at the individual level. The study results can help them make these decisions armed with better information based on real data from their peer groups.”

An Eye on the Next Generation

Looking to the future, firms are increasingly eyeing the next generation of advisors and identifying a plan for succession. Here, too, the strategy is further along at larger firms. Among RIAs with at least $1 billion in AUM, 64 percent reported having established a formal succession plan. Sixty percent of firms with $250 million to $1 billion in AUM have an established plan, while at firms managing $100 million to $250 million in assets, 41 percent have a plan.

Finally, technology integration appears to be reaching a critical mass, with just 38 percent of study firms citing it as a challenge to their firms, versus 59 percent saying it presented a challenge in the previous year. Additionally, digital strategies in 2013 are viewed as a means to communicate and enhance the client experience. From an operational standpoint, 86 percent of firms now invest or plan to invest in the next 12 to 18 months in workflow technology; 73 percent now invest or plan to invest in mobile technologies; and 67 percent invest now or plan to invest in cloud-based technologies.

3 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.99 -9.95 -0.06%
S&P 500 2,069.26 +2.23 0.11%
NASDAQ 4,773.8820 +15.63 0.33%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs