BlackRock, the world's largest asset manager, reported a record high of $10.65 trillion in assets under management (AUM) for the second quarter of 2024. The company's AUM increased by 13% from $9.43 trillion in the previous quarter, driven by rising client asset values and inflows into the company's exchange-traded funds (ETFs). The S&P 500 index's 4% increase in the quarter contributed to BlackRock's assets under management growing from $9.43 trillion to $10.65 trillion. BlackRock registered net inflows of $81.57 billion, with ETFs capturing the majority of flows at $83 billion. The company's total revenue increased by 8% to $4.81 billion, and its net income rose to $1.50 billion. CEO Larry Fink highlighted the company's execution on opportunities in private markets [7ea15a78].
Dynasty Financial Partners, a network of wealth advisor businesses in the US, has also reached a significant milestone in assets under management. The firm announced that it has surpassed $100 billion in platform assets. Dynasty's average AUM per firm is $1.8 billion, and the average assets per advisor are about $250 million. The firm provides services including investment bank and M&A advisory to business owners looking to acquire RIAs, grow them, or exit the business. Dynasty is capitalizing on the expected transfer of trillions of dollars in assets as Baby Boomers pass on. The firm's model also taps into the trend of advisors leaving banks and other firms to start their own RIAs. Dynasty has launched an investment bank dedicated to the RIA space and has experienced significant growth in its Outsourced Chief Investment Officer offering. CEO Shirl Penney believes that the firm's integrated platform resonates with financial advisors and their clients who are seeking independence. Dynasty has seen strong growth compared to industry benchmarks, with a compound annual growth rate of 14.3% for its RIAs compared to 6.4% for peers of a similar size. However, with success comes scrutiny, and competitors will be watching closely for opportunities in the market [7f1a6e69].
Mutual of America has promoted John Greed, the leader of its $29 billion registered investment advisor (RIA) business, to group CEO. The promotion comes as the company looks to expand its RIA business and strengthen its position in the retirement plan market. Greed has been with Mutual of America for over 30 years and has played a key role in growing the RIA business. He will now oversee all aspects of the company's operations and strategic initiatives. The promotion reflects Mutual of America's commitment to its RIA business and its confidence in Greed's leadership [ad0d2366].
Bluespring Wealth Partners, an independent registered investment adviser (RIA), has announced that it has welcomed $500 million in assets under management (AUM) as an affiliate. The firm, which focuses on providing comprehensive wealth management services, aims to leverage its new resources to expand its client base and enhance its service offerings. Bluespring Wealth Partners is excited about the growth opportunities that this affiliation brings and is confident in its ability to deliver exceptional value to its clients [a15fa119].
Ameriprise Financial, a leading wealth management company, reported a 9% increase in second-quarter adjusted profit on July 24, 2024. The rise in profit was driven by increased client asset values and strong fee-based income. The company's assets under management and administration (AUM) reached $1.43 trillion, a 12% year-over-year increase, fueled by client net inflows and market appreciation. Adjusted operating earnings rose to $882 million, or $8.53 per share, compared to $807 million, or $7.44 per share, last year. Management and financial advice fees surged by 12% to $2.46 billion, while net investment income increased by 14% to $921 million. Ameriprise Financial's positive performance reflects investor confidence and market momentum, with shares rising 11.7% year-to-date. The wealth management sector, with total client assets of $972 billion, is a major growth driver. The broader economic optimism and interest in technological advancements, particularly in artificial intelligence, are shaping financial markets. Ameriprise's success highlights the interconnected nature of economic sentiment, market performance, and asset management [49f432fb].
Asian wealth management firms aim to double assets under management to US$260 trillion by 2026, according to a report from Accenture. The report is based on a survey of more than 4,500 investors, 650 relationship managers, and 16 interviews with senior executives of wealth firms across 10 Asia-Pacific markets. About 11% of Asian high-net-worth clients' assets are currently invested outside their home markets, and 60% of these clients chose their wealth managers based on their capabilities in offshore investing. Firms are targeting high-net-worth individuals with more than US$1 million in investible assets each. Asian banks and wealth management companies plan to invest more in generative artificial intelligence (gen AI) tools to help their relationship managers provide analysis and other information to clients [cad85f1a].
The strong performance of BlackRock, Dynasty Financial Partners, Mutual of America, and Ameriprise Financial reflects the overall resilience and growth of the global wealth management market. Other wealth management firms have also reported record client assets. T. Rowe Price, a global investment management firm, reported a 2.5% decline in its AUM for October 2023, totaling $1.31 trillion. Farther, a financial technology startup, announced that its AUM reached $1.6 billion, more than double its previously reported assets. Wealthfront, another robo-advisor, now oversees more than $50 billion in client assets. Charles Schwab reported client assets of $9.1 trillion, up 20% from the same period last year. Bank of America's wealth unit reported $4.5 trillion, up 14%. Morgan Stanley also hit a record for client assets.
The wealth management industry continues to evolve and adapt to changing market conditions. BridgeFT, a cloud-native technology provider, has been selected by Income Lab to provide core software infrastructure. Summit Wealth Systems has partnered with LifeYield to incorporate tax-saving, multi-account rebalancing into its platform. AdvicePay, a billing tool for financial advisors, has raised $3.8 million in funding and has doubled the number of advisors on its platform in the past two years.
In summary, BlackRock's assets have reached a record high of $10.65 trillion, driven by rising client asset values and inflows into the company's ETFs. Dynasty Financial Partners has surpassed $100 billion in platform assets, capitalizing on the expected transfer of trillions of dollars in assets as Baby Boomers pass on. Mutual of America has promoted John Greed, the leader of its $29 billion RIA business, to group CEO. Bluespring Wealth Partners has welcomed $500 million in assets as an affiliate, aiming to expand its client base and enhance its service offerings. Ameriprise Financial reported a 9% increase in Q2 profit on the back of strong client asset values and fee-based income. Asian wealth management firms are targeting a doubling of assets under management to US$260 trillion by 2026, with a focus on high-net-worth individuals and offshore investing capabilities. The strong financial performance of these firms reflects the overall resilience and growth of the global wealth management market. Other wealth management firms have also reported record client assets, indicating the strength of the industry. The wealth management industry continues to innovate and adapt to changing market conditions, with technology playing a crucial role in enhancing services and improving efficiency.