Part of GrowthPoint(TM) Practice Management Program
WASHINGTON, Nov. 6 /PRNewswire-FirstCall/ -- Schwab Institutional, a
leading provider of custodial, operational and trading support for
independent fee-based investment advisors, today formally unveiled a new
Marketing and Business Development offering for advisors and revealed key
findings from its landmark RIA Benchmarking: Growth Trends Study that is
the cornerstone of the new offering.
At Schwab Institutional's IMPACT(R) conference, where more than 1,700
independent investment advisors gathered at the sold-out event, President
Deborah Doyle McWhinney revealed the Marketing and Business Development
offering, which is part of GrowthPoint(TM), a new program that builds on
Schwab's existing practice management solutions and takes a uniquely
tailored, strategic approach to helping advisors build their businesses.
GrowthPoint consists of three distinct service offerings:
Marketing/Business Development, Business Strategy/Planning and Transition
Services.
RIA Benchmarking: Growth Trends Study
More than 1,000 independent investment advisory firms of all sizes and
types across the country completed a comprehensive questionnaire on growth
and marketing/business development in August and September. Each firm will
receive a customized Peer Benchmarking Report that provides an in-depth
analysis of how their growth compares to firms of similar size and type.
Unlike other studies that report basic financial metrics with limited
context, each advisor who participated in the Growth Trends Study will
receive a customized 14-page report that compares their growth to their
peers as well as to some of the fastest growing firms in the industry. The
reports will reveal new insights in a rich array of areas including sources
of asset and revenue growth, sources of new clients, staff and dollar
investment for client acquisition and how long it takes to earn that
investment back, pricing, attitudes on growth plans and anticipated
barriers to future growth. The reports will outline strengths and
opportunities, help advisors gain perspective and set targets by learning
how their firm's current growth compares to that of their peers. Advisors
can use the report in tandem with other available reports to gain an even
more well-rounded view of their businesses.
Among the findings of the RIA Benchmarking Growth Trends Study:
* A large majority of advisors have a strong appetite for future growth:
78% plan to grow aggressively or moderately in the next five years
* Client referrals are the #1 source (56%) of new clients; Center of
Influence (COI) referrals are #2 source (26%) of new clients
* The fastest growing firms achieve two to three times more growth from
client and COI referrals as other firms
-- Only 5% of advisors cite closing success as a significant barrier,
indicating that once most advisors meet with a prospect they are able
to close them
* Participating advisors boast a 97% client retention rate
* 30% of participating advisors are not satisfied with their growth over
past three years
* A startling 40% of advisors do not set targets for growth
* Advisors cite several significant barriers to growth:
-- Most frequently cited was staff time (34%) and growth planning (31%)
indicating that advisors are most challenged by having the time to
plan for, prepare for and absorb growth
"This study is about helping advisors make informed choices about the
investments they make in business development. Its insights will fuel their
ability to plan for growth more strategically and achieve their firms'
potential," said McWhinney.
She noted that nearly half of the firms that participated in the study
have more than $100 million in assets under management. "We are in a unique
position to conduct this type of study," continued McWhinney. "Advisors who
custody with Schwab Institutional are among the largest and fastest growing
firms in the industry, and we know that advisors want to learn from those
who are similar in size and type of business model."
Marketing Diagnostic, Tools and Resources
McWhinney also announced that a new, comprehensive Marketing and
Business Development web site debuted on schwabinstitutional.com/marketing
today. Built exclusively for Schwab Institutional clients, the new site
will house a robust set of tools and resources, including an online
Marketing Diagnostic.
The Marketing Diagnostic is a consultative online tool that was created
to help advisors assess their marketing and business development efforts in
relation to industry best practices and refine where to best allocate their
time and money. After a short online exercise during which advisors provide
information on their business, growth objectives, and current activities in
marketing/business development, advisors instantly receive a report with
tailored recommendations in the areas of strategy, planning and business
building tactics.
The Marketing Diagnostic links the recommendations to relevant tactical
tools and resources, including how-to guides, worksheets, checklists,
templates for common tactics, and access to additional resources. The tools
span both one-to-many marketing tactics such as public relations and client
communications to one-to-one business development strategies such as
developing a proactive plan to generate new business from referrals.
"Many advisors have told us that they are so busy absorbing and
reacting to growth, they have nominal time to plan for it," said McWhinney.
"We are helping advisors avoid timely and costly trial and error. This tool
lets advisors skip right to what's proven to work in our industry."
The new Marketing and Business Development offering will be delivered
to advisors through multiple channels to enable them to choose the level
and method of support and guidance that meet their specific needs. Channels
include one-on-one support through marketing consultants, feedback from
peers and industry experts at regional events, workshops and self-directed
learning online and through webcasts.
About Schwab Institutional
Schwab Institutional, a division of Charles Schwab & Co. Inc., is a
leading provider of custodial, operational and trading support for
independent fee-based investment advisors. Client assets custodied with
Schwab Institutional stood at $468 billion as of September 30, 2006. These
assets, managed by the approximately 5,000 independent advisor firms Schwab
Institutional serves, represent approximately one-third of total client
assets custodied with The Charles Schwab Corporation.
About Charles Schwab
The Charles Schwab Corporation (Nasdaq: SCHW) is a leading provider of
financial services, with more than 330 offices and 6.8 million client
brokerage accounts, 535,000 corporate retirement plan participants, 181,000
banking accounts, and $1.3 trillion in client assets. Through its operating
subsidiaries, the company provides a full range of securities brokerage,
banking, money management and financial advisory services to individual
investors and independent investment advisors. Its broker-dealer
subsidiary, Charles Schwab & Co., Inc. (member SIPC, http://www.sipc.org),
offers a complete range of investment services and products including an
extensive selection of mutual funds; financial planning and investment
advice; retirement plan and equity compensation plan services; referrals to
independent fee-based investment advisors; and custodial, operational and
trading support for independent, fee-based investment advisors through its
Schwab Institutional division. The Charles Schwab Bank, N.A. (member FDIC)
provides banking and mortgage services and products. The company's other
operating subsidiaries include U.S. Trust Corporation (member FDIC) and
CyberTrader(R), Inc. (member SIPC, http://www.sipc.org). More information
is available at http://www.schwab.com. (1106-8153)
SOURCE Charles Schwab
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Related links:
http://www.schwab.com
CONTACT:
Michael Cianfrocca of Charles Schwab, mobile,
+1-415-307-1558, or Michael.Cianfrocca@schwab.com
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