Charles Schwab's advisor-managed assets increased 8% year-over-year in the third quarter to $609.9 billion.
Third quarter assets were 2% higher than they were in the second quarter this year.
“Given the investment environment, this shows a good, ongoing growth in advisory assets,” said Greg Gable, a spokesman for the firm in San Francisco, Calif. “ The investment advisory model continues to gain strength—it’s attractive to investors with complex portfolios and it’s proved itself in a very competitive market.”
Charles Schwab’s administrative trust services, where the advisor is the corporate or directed trustee, topped $1 billion in client assets in the third quarter. Client assets in personal trust reporting services, where the client is the trustee, reached $1.7 billion.
Overall, though, the firm’s results were negative, down 38% to $124 million from $200 million in the third quarter 2009. Net income would have been $94 million higher, but Charles Schwab took a one-time charge related to its money market mutual funds after a single structured investment vehicle that defaulted in 2008.
