Raymond James loses staff but retains assets in RIA unit


Raymond James Financial said its total adviser headcount in the third fiscal quarter was down 1% from the prior quarter, but the decline was primarily due to the transfer of 188 advisers from one company, Steward Partners, to its RIA division. and daycare services.

Hybrid RIA Steward Partners used Raymond James Financial Services for its brokerage business, but the business recently moved to its own broker/dealer. And while Steward has expanded its custodial relationships to include Goldman Sachs, Raymond James CEO Paul Reilly said in the company’s earnings report that their assets are “generally held” through its custodial division. keep.

“It was a one-time move that really focused on kind of a game-changing business strategy for them,” CEO Paul Reilly said in an earnings call Thursday morning. “It’s one of the biggest companies on the platform that’s moved to RIA, and we don’t see people continuing to move, but it’s no different than movement between the rest of our channels. “

(Once a team enters the Enterprise RIA channel, they are no longer part of the Enterprise Advisor complement.)

The company reported a total of 8,616 financial advisors at the end of the third fiscal quarter, up 203 from a year ago and down 114 from the second fiscal quarter. Excluding transfers, the firm added 74 new advisers compared to last quarter.

“Strategically, we’ve built and really strengthened our RIA offering simply because it was and has been the fastest growing segment in the industry,” Reilly said. “And the good news is that when people switched to RIA, they didn’t go to any of our dealership competitors. They practically stayed 100% at Raymond James. It is therefore a good retention tool.

In the last 12 months ending June 30, the company brought in advisors with $300 million in 12-month production and $47 billion in client assets at their previous companies.

The firm’s private client group recorded net new assets of nearly $98 billion in the four quarters ending June 30, up 9.4% since the start of that period.

Total assets under administration were $1.07 trillion for the segment, down 3% from a year ago and 11% from March 2022 due to the sharp decline in equity markets in course of the quarter.

Despite the market environment, the private client group generated record quarterly net revenue of $1.96 billion, up 15% from a year ago and 2% sequentially. The segment also posted record quarterly pretax profit of $251 million, up 29% from a year ago and 18% sequentially.

Our focus on supporting advisors and their clients, particularly during volatile markets, has led to strong results in advisor retention, as well as our recruiting of experienced advisors to Raymond James platforms through our multiple development options. affiliation,” Reilly said.

Overall, Raymond James’ net income was $2.71 billion, a 10% year-over-year increase, primarily due to higher interest rates and the increase in income from the banking division.


Comments are closed.