Schwab Advisor Services net new assets rise 47% in Q3
CEO Rick Wurster drew a contrast with Fidelity after Fidelity told sub-$100 million custody clients to move by June 2027.
At a glance
Schwab Advisor Services took in $120.1 billion of net new assets in the three months ended Sept. 30, up 47% from $81.7 billion a year earlier.
Fidelity has told custody clients under $100 million to move by June 2027 with no fee option to stay, as this publication reported.
Schwab shares fell 2.73% to $94.16, down $2.64.
Schwab Advisor Services took in $120.1 billion of net new assets in the three months ended Sept. 30, up 47% from $81.7 billion a year earlier. CEO Rick Wurster used the Oct. 15 business update to credit the platform's size-blind admissions policy, drawing a contrast with Fidelity Investments' decision to push sub-$100 million RIAs off its custody platform.
Schwab reported a record $190.4 billion of net new assets firmwide, up 38% from last year's third quarter. Schwab Wealth Advisory's net flows rose 55% over the same period. Wurster told advisors: “Advisors of all sizes are turning to Schwab when they start their firms, and they're relying on us as they grow, move upmarket and serve increasingly sophisticated clients.” He said more than 1,100 advisory firms added Schwab as a custodian last year, more than three times the number of the next closest provider.
Fidelity has told custody clients under $100 million to move by June 2027 with no fee option to stay, as this publication reported. Fidelity's no-fee exit order is a hard line Michael Kitces called bizarre, noting that earlier minimum increases let small firms pay a fee to keep their accounts. Schwab has disclosed that 11,000 sub-$100 million RIAs keep assets on its platform. Schwab says it serves more than 16,000 advisory firms representing $5.8 trillion in assets.
A source close to Fidelity told RIABiz the firm has gained market share recently as measured by assets, without giving a figure or period; custodians keep share data largely confidential. Schwab also declines to break out Schwab Wealth Advisory's asset totals, so the combined in-house and third-party RIA flows behind the 47% and 55% figures cannot be calculated from its disclosures. The $120.1 billion of Advisor Services net new assets alone represented 63% of the firmwide $190.4 billion. This publication reported that Schwab priced its Claude AI integration at $240 per seat per year, with the process work the advisor absorbs.
Schwab shares fell 2.73% to $94.16, down $2.64. Revenue and net interest margin came in slightly below analyst expectations, alongside a semi-cautious outlook tied to interest rate uncertainty.
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