Charles Schwab’s advisor services assets under management hit $1.56 trillion at the end of the first quarter, an increase of 15% from the same time last year.
Schwab acts as a custodian for RIAs through its advisor services division. The unit gives RIAs access to funds, ETFs and a technical platform to carry out trades, rebalance client portfolios and service client accounts.
Over the first three months of 2018, the division pulled in $32 billion of new assets, a 29% increase on the amount it won the equivalent period last year.
‘Our outstanding organic growth helped to partially offset market declines,’ Charles Schwab chief executive Walt Bettinger said in a statement.
The firm had $3.3 trillion in total client assets under management at the end of the first quarter, up 13% year-over-year but down 2% from the previous quarter. That figure factors in Schwab’s brokerage business, which the firm refers to as its investor services division.
The firm said this business experienced a planned outflow of $84.4 billion from its mutual fund clearing services business, which contributed to a net decline in client assets of $56.4 billion in the quarter. Schwab did not identify which of its clients had pulled the money from the platform, which processes mutual fund trades for banks and brokerage firms.
‘Excluding [the planned outflows], our clients entrusted us with record quarterly core net new assets of $65.6 billion, implying an annualized growth rate of 7.8% – a level not seen since 2008,’ Bettinger said.
Schwab's net income rose 39% year over year to $783 million, while its net revenue gained 15% in that same period to $2.4 billion.
Total ETF assets gained 29% year-over-year and 3% quarter-on-quarter, to $449 billion.
Total asset management fees grew 3.4% year-over-year, to $851 million.