This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Infographic: How RIAs Are Building A Foundation For Success (Courtesy Of Schwab Advisor Services)

Stocks in this article: SCHW

According to the results from the 2014 RIA Benchmarking Study by Charles Schwab, independent registered investment advisors (RIAs) have achieved record growth and the highest profitability of any year since the inception of the Study in 2006. While market performance has played an ongoing role in the growth of assets under management (AUM), an increasingly important proportion of RIA firm success is being driven by steady organic growth alongside the application of greater levels of strategic business practices and operational discipline.

RIA firms of all sizes (based on AUM) have seen remarkable growth since the market lows of 2009, according to the Study, with more than one-third (36%) of all firms doubling their AUM and revenues since that time. The median firm realized a 12.8 percent compound annual growth rate (CAGR) 1 in AUM and 13.6 percent in revenues. The median revenue climbed to $3.3 million, and one-third of these firms earned more than $5 million in revenues in 2013.

“Our Benchmarking Study shows that RIA firms are continuing to thrive,” said Jonathan Beatty, senior vice president, sales and relationship management, Schwab Advisor Services. “Organic growth and a more strategic and disciplined approach to managing this growth emerged as notable trends this year. Robust new client acquisition and expanded share of wallet with existing clients were the primary drivers of organic growth and underscores the power of the independent model and the continued demand for unbiased advice among investors.”

Now in its eighth year, Schwab’s RIA Benchmarking Study is the largest of its kind. The 2014 Study reflects input from more than 1,100 firms representing nearly three quarters of a trillion dollars in AUM. While growth among RIAs has been a prevailing theme over the past several years, the latest data revealed a number of shared strategic and operational characteristics among the Best-Managed Firms 2 that are contributing to amplified growth and business performance versus their peers. These firms are also demonstrating a noticeable focus on building enduring businesses. Best-Managed Firms are outperforming their peers by focusing on three important areas:

1. Institutionalizing their business by applying more strategic management practices and establishing greater levels of operational discipline.

1 of 6

Select the service that is right for you!

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!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • 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