Raymond James' plans to ramp up recruiting of financial advisors panned out during the first three months of 2021, helping push client assets and income to new highs.
The company had 8,327 Private Client Group financial advisors in its fiscal second quarter ending March 31, up 94 from the previous quarter and up 179 from the end of March 2020, according to the company.
“Recruiting activity remains strong across all of our affiliation options, as prospective advisors continue to be attracted to our advisor- and client-focused culture, leading technology solutions, and robust product and service offerings,” Raymond James chairman and CEO Paul Reilly says in the latest earnings report.
Reilly said in January that the firm’s employee channel had a slowdown in advisor recruiting due to tougher competition and the challenges related to the Covid-19 pandemic, as reported. During the last three months of 2020, the Private Client Group saw a net decrease of six advisors.
Client assets under administration in the unit, meanwhile, reached a record $1.03 trillion by the end of last month, up 6% from the end of 2020 and 40% higher year-over-year, Raymond James says. Private Client Group client assets in fee-based accounts hit a record of $567.6 billion by the end of March 2021, which was 7% higher than the firm had at the end of 2020 and 48% higher year-over-year, according to the report.
Client’s domestic cash sweep balances at the end of March stood at a record $62.8 billion, an increase of 2% from the prior quarter and 19% higher than the unit had at the end of March 2020, the company says.
The Private Client Group also hit record net revenues, posting $1.65 billion during the latest quarter, a 12% increase over the prior quarter and a 10% increase year-over-year, according to the report. Raymond James attributes it to record assets in fee-based accounts as well as higher brokerage revenues, which was in turn due to market appreciation as well as growth in advisor ranks.
The rise in revenues helped push pre-tax income in the unit to $192 million during the first three months of 2021, or 37% higher than in the prior quarter and 13% higher year-over-year, the company says.
Do you have a news tip you’d like to share with FA-IQ? Email us at firstname.lastname@example.org.