Schwab reports record $190.4 billion net new assets and touts all-size RIA custody

Charles Schwab reported record quarterly net new assets of $190.4 billion, up 38% from a year earlier, according to RIABiz. At the firm's Oct. 15 business update, CEO Rick Wurster contrasted Schwab's willingness to custody advisors of any size with Fidelity's decision to move sub-$100-million RIAs off its platform.

RIABiz reported that Schwab Advisor Services took in $120.1 billion in the three months ended Sept. 30, up 47% from $81.7 billion a year earlier. Schwab Wealth Advisory net flows rose 55% over the same span. The Advisor Services total is 63% of the $190.4 billion companywide figure. Schwab does not break out its in-house wealth management assets, so a combined RIA number isn't available.

Wurster 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. Schwab serves more than 16,000 firms representing $5.8 trillion in assets, he said. "Advisors of all sizes are turning to Schwab when they start their firms," he said. Schwab recently disclosed that 11,000 sub-$100-million RIAs custody on the platform. Spread the $5.8 trillion across 16,000-plus firms and the average sits near $360 million, which suggests the smallest practices account for a small slice of platform assets and a large slice of the firm count.

Fidelity's deadline requires its sub-$100-million RIA clients to reach $100 million or leave by mid-2027, as PWD reported this month. Whether Schwab's quarterly inflows reflect that policy is unconfirmed: RIABiz notes custodial market-share statistics are kept largely confidential, and a source close to Fidelity told the outlet the firm has gained share by assets of late.

Schwab shares fell 2.73% to $94.16 that day, down $2.64, after revenue and net interest margin landed slightly below analyst expectations alongside a semi-cautious outlook tied to interest rate uncertainty.