SHREWSBURY, N.J., July 27, 2011 /PRNewswire/ -- In its July issue, Financial Advisor magazine released its sixth annual RIA survey, the most comprehensive survey of RIA firms conducted by any periodical. The 2011 survey, which is based on firms' assets at the end of 2010, found that the RIA business is rebounding from the 2008-2009 recession, with many firms eclipsing their pre-recession highs.
On a collective basis, the 454 RIA firms that participated in the survey saw their assets grow 19.8% in 2010 from $325.42 billion to $389.85 billion. In contrast, the Standard & Poor's 500 index climbed 12.8% last year. Only 19 of the 454 participating experienced a decline in assets last year.
The addition of new clients, coupled with asset appreciation, contributed to the increase in assets under management. The number of client relationships at the average firm rose 12.0% from 458 at the end of 2009 to 513 at the end of 2010.
Underscoring the growth among individual RIA firms, 91 firms participating in the 2011 survey managed more than $1 billion in assets, compared to only 21 firms when the survey was launched in 2006. All the firms participating in the survey collectively managed $389.85 billion, with the 91 firms managing more than $1 billion in assets accounting for $290.99 billion, or 74.6% of the total.
Improved business conditions prompted RIA firms to expand their staff in 2011. The average number of total employees rose to 17.6 from 16.2, an increase of 8.6%.
To see the ranking of the RIA firms in our survey and which firms are in your local area, click here.
SOURCE Financial Advisor magazine