Charles Schwab 2015 Annual Report Download - page 17

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15
GROWTH IN CLIENT ASSETS AND ACCOUNTS
GROWTH IN CLIENT ASSETS AND ACCOUNTS
GROWTH RATES
COMPOUNDED
4-YEAR
ANNUAL
1-YEAR
(In Billions, at Year-End, Except As Noted) 2011-15 2014-15 2015 2014 2013 2012 2011
Assets in client accounts
Schwab One®
, certain cash equivalents and bank deposits 14% 18% $ 161.1 $ 136.0 $ 127.3 $ 119.0 $ 96.4
Proprietary mutual funds (Schwab Funds® and Laudus Funds®):
Money market funds 1% (1%) 166.1 167.9 167.7 167.9 159.8
Equity and bond funds (1) 17% 1% 62.4 61.5 54.4 41.1 33.2
Total proprietary mutual funds 4% – 228.5 229.4 222.1 209.0 193.0
Mutual Fund Marketplace® (2)
Mutual Fund OneSource® (3) 3% (11%) 207.7 234.4 234.8 204.5 183.5
Mutual fund clearing services 16% 13% 186.5 164.7 147.4 159.1 104.2
Other third-party mutual funds (3) 11% 2% 496.4 486.2 446.6 387.3 326.0
Total Mutual Fund Marketplace 10% 1% 890.6 885.3 828.8 750.9 613.7
Total mutual fund assets 9% – 1,119.1 1,114.7 1,050.9 959.9 806.7
Exchange-traded funds (ETFs) (1)
Proprietary ETFs 68% 48% 39.7 26.9 16.8 8.5 5.0
ETF OneSource™ (2) N/M 10% 16.1 14.7 8.5 – –
Other third-party ETFs 15% 7% 207.4 194.7 179.0 145.6 117.8
Total ETF assets 21% 11% 263.2 236.3 204.3 154.1 122.8
Equity and other securities (1,3) 13% – 799.0 802.2 702.0 548.3 485.1
Fixed income securities 1% (1%) 187.2 188.7 177.5 181.8 176.9
Margin loans outstanding 12% 10% (15.8) (14.3) (12.6) (11.5) (10.2)
Total client assets 11% 2% $ 2,513.8 $ 2,463.6 $ 2,249.4 $ 1,951.6 $ 1,677.7
Client assets by business (4)
Investor Services 10% 3% $ 1,358.6 $ 1,325.2 $ 1,217.0 $ 1,088.6 $ 933.4
Advisor Services 12% 1% 1,155.2 1,138.4 1,032.4 863.0 744.3
Total client assets 11% 2% $ 2,513.8 $ 2,463.6 $ 2,249.4 $ 1,951.6 $ 1,677.7
Net growth in assets in client accounts
(for the year ended)
Net new assets by business (4)
Investor Services (5,6) (3%) 47% $ 84.1 $ 57.4 $ (19.5) $ 78.6 $ 95.6
Advisor Services (7) 2% (18%) 55.3 67.4 61.1 61.1 50.3
Total net new assets (1%) 12% $ 139.4 $ 124.8 $ 41.6 $ 139.7 $ 145.9
Net market (losses) gains (89.2) 89.4 256.2 134.2 (42.7)
Net growth (16%) (77%) $ 50.2 $ 214.2 $ 297.8 $ 273.9 $ 103.2
New brokerage accounts (8)
(in thousands, for the year ended) (2%) 10% 1,070 972 960 900 1,138
Clients (in thousands)
Active Brokerage Accounts (9) 3% 4% 9,769 9,386 9,093 8,787 8,552
Banking Accounts 7% 5% 1,033 985 916 865 780
Corporate Retirement Plan Participants (5) – 6% 1,519 1,428 1,305 1,571 1,492
(1) Effective 2014, ETFs are presented separately; they were previously included in Equity and bond funds and Equity and other securities. Prior period information
has been recast to reect this change.
(2) Excludes all proprietary mutual funds and ETFs.
(3) In 2015, certain Mutual Fund OneSource balances were reclassied to Other third-party mutual funds and Equity and other securities. Prior period information
has been recast to reect this change.
(4) In 2015, the Company realigned its reportable segments as a result of organizational changes. The Corporate Brokerage Retirement Services business was
transferred from the Investor Services segment to the Advisor Services segment. Prior period segment information has been recast to reect this change.
(5) In 2015, the Company increased its reported totals for overall client assets and retirement plan participants by $6.1 billion and 35,000, respectively, to
reect the nal impact of the consolidation of its retirement plan recordkeeping platforms as previously announced in 2013. In 2013, the Company reduced
its reported totals for overall client assets and retirement plan participants by $24.7 billion and 317,000, respectively, to reect the estimated impact of the
consolidation of its retirement plan recordkeeping platforms and subsequent resignation from certain retirement plan clients.
(6) 2015 includes inows of $32.5 billion from certain mutual fund clearing service clients. 2014 includes inows of $10.2 billion and an outow of $3.4 billion from
certain mutual fund clearing services clients. 2013 includes outows of $74.5 billion relating to the planned transfer of a mutual fund clearing services client
and $2.1 billion from another mutual fund clearing services client. 2013 also includes inows of $35.8 billion from certain mutual fund clearing services clients.
2012 includes inows of $33.1 billion from certain mutual fund clearing services clients. 2012 also includes outows of approximately $100 million from the sale
of Open E Cry, LLC, and $900 million relating to a planned transfer from Corporate Brokerage Services. 2011 includes inows of $56.1 billion from a mutual fund
clearing services client and $7.5 billion from the acquisition of optionsXpress Holdings, Inc.
(7) 2015 includes an outow of $11.6 billion relating to the Company’s planned resignation from an Advisor Services cash management relationship. 2012 includes
inows of approximately $900 million from the acquisition of ThomasPartners, Inc., and outows of $1.2 billion from the closure of brokersXpress LLC.
(8) 2011 includes 315,000 new brokerage accounts from the acquisition of optionsXpress Holdings, Inc.
(9) In 2012, the Company removed approximately 30,000 brokerage accounts due to escheatment and other factors and reduced accounts by 19,000 from the sale
of Open E Cry, LLC, and the closure of brokersXpress LLC.
N/M = Not Meaningful