Charles Schwab 2006 Annual Report Download - page 24

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22
Schwab Institutional (SI) is dedicated to helping
independent investment advisors grow, com-
pete, and succeed. We serve more than 5,000
advisors across the country, helping them meet
their core custody and trading needs, run their
businesses more efficiently, and support the
growth of their firms. At more than two times
the size of our nearest direct competitor, SI is
the leader in serving the Registered Investment
Advisor (RIA) industry – the fastest-growing
segment of financial services.
Independent financial advisors are professional
advisors who are not employed by any brokerage
firm. Because they are fee-based, their advice
is objective and in the client’s best interest.
This is a philosophy that has always been at the
heart of the way Schwab works with its clients.
That’s also why independent advisors have
turned to Schwab Institutional for the past 20
years to take care of important tasks, such as
executing trades and preparing monthly state-
ments for clients.
In 2006, SI delivered exceptional financial
performance, increasing net new assets by 22
percent and revenues by 20 percent over the
previous year. We ended 2006 on a high note
with client assets reaching $502 billion, up 23
percent from the prior year and halfway to our
goal of $1 trillion in client assets by the end of
2010. These strong results reflect continued
growth in assets from existing advisor clients
as well as our intensified efforts to attract
assets from new clients.
During the year, we made investments to
enhance our technology, products, and sales and
service support. This included the introduction
of a business development and marketing
services program that builds on our existing
practice management solutions. We also
expanded our offering to advisors transitioning
from full-commission brokerages to become
independent investment advisors.
At the annual IMPACT® conference in November
2006, we introduced the industry-wide IMPACT
Awards™ to recognize the leaders in the RIA
industry. Among the inaugural award winners
was Tim Kochis, co-founder and CEO of Kochis
Fitz financial advisors in San Francisco, who
won the Charles R. Schwab IMPACT Award for
outstanding leadership, client commitment,
and community engagement.
In 2007, as we celebrate our 20th year, we will
step up our investment in our service, platform,
products, and programs so we can help our
clients grow their businesses at even faster
rates. To commemorate our anniversary, we
plan a series of programs and communications
to recognize the contributions that independent
advisors have made to the investing public.
2006 F I N ANCIA L HIGHLI G H TS
- ANNUAL REVENUES INCREASED 20 PERCENT TO $966 MILLION
- PRE-TAX MARGIN WAS 41.8 PERCENT, UP FROM 39.5 PERCENT IN 2005
S CH WA B I N S T IT U T I O NA L
Tim Kochis, co-founder and CEO of
Kochis Fitz financial advisors