Charles Schwab 2014 Annual Report Download - page 15

GROWTH IN CLIENT ASSETS AND ACCOUNTS / 13
GROWTH IN CLIENT ASSETS AND ACCOUNTS
(1) Beginning in 2014, exchange-traded funds (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 2013, the Company realigned its reportable segments as a result of organizational changes. The segment formerly reported as Institutional Services was renamed to Advisor
Services. Additionally, the Retirement Plan Services and Corporate Brokerage Services business units are now part of the Investor Services segment. Prior period segment
information has been recast to reect these changes.
(4) 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.
(5) 2014 includes inows of $10.2 billion and an outow 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. 2010 includes outows of $51.5 billion relating to the
planned deconversion of a mutual fund clearing services client, and inows of $500 million from the acquisition of Windhaven Investment Management, Inc., and $1.2 billion from
a mutual fund clearing services client.
(6) 2012 includes inows of approximately $900 million from the acquisition of ThomasPartners, Inc., and outows of $1.2 billion from the closure of brokersXpress LLC. 2010
includes inows of $1.5 billion from the acquisition of Windhaven Investment Management, Inc.
(7) 2011 includes 315,000 new brokerage accounts from the acquisition of optionsXpress Holdings, Inc.
(8) 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
GROWTH RATES
COMPOUNDED
4-YEAR
ANNUAL
1-YEAR
(In Billions, at Year-End, Except As Noted) 2010–14 2013–14 2014 2013 2012 2011 2010
Assets in client accounts
Schwab One®
, other cash equivalents
and deposits from banking clients 14% 7% $ 136.0 $ 127.3 $ 119.0 $ 96.4 $ 81.1
Proprietary mutual funds (Schwab Funds® and Laudus Funds®):
Money market funds 2% — 167.9 167.7 167.9 159.8 154.5
Equity and bond funds (1) 9% 13% 61.5 54.4 41.1 33.2 43.3
Total proprietary mutual funds 4% 3% $ 229.4 $ 222.1 $ 209.0 $ 193.0 $ 197.8
Mutual Fund Marketplace® (2)
Mutual Fund OneSource®6% — 260.5 260.5 223.2 198.6 208.6
Mutual fund clearing services 41% 12% 164.7 147.4 159.1 104.2 42.1
Other third-party mutual funds 12% 10% 461.9 420.9 368.6 310.9 294.5
Total Mutual Fund Marketplace 13% 7% 887.1 828.8 750.9 613.7 545.2
Total mutual fund assets 11% 6% 1,116.5 1,050.9 959.9 806.7 743.0
Exchange-traded funds (ETFs) (1)
Proprietary ETFs 78% 60% 26.9 16.8 8.5 5.0 2.7
ETF OneSource™ (2) N/M 73% 14.7 8.5 — — —
Other third-party ETFs 15% 9% 194.7 179.0 145.6 117.8 110.7
Total ETF assets 20% 16% 236.3 204.3 154.1 122.8 113.4
Equity and other securities (1) 14% 14% 800.4 702.0 548.3 485.1 476.0
Fixed income securities 2% 6% 188.7 177.5 181.8 176.9 171.3
Margin loans outstanding 9% 13% (14.3) (12.6) (11.5) (10.2) (10.3)
Total client assets 12% 10% $ 2,463.6 $ 2,249.4 $ 1,951.6 $ 1,677.7 $ 1,574.5
Client assets by business (3)
Investor Services 13% 9% $ 1,351.5 $ 1,241.5 $ 1,112.1 $ 955.3 $ 825.1
Advisor Services 10% 10% $ 1,112.1 $ 1,007.9 $ 839.5 $ 722.4 $ 749.4
Total client assets 12% 10% $ 2,463.6 $ 2,249.4 $ 1,951.6 $ 1,677.7 $ 1,574.5
Net growth in assets in client accounts
(for the year ended)
Net new assets by business (3)
Investor Services (4,5) N/M N/M $ 59.1 $ (18.2) $ 79.7 $ 97.4 $ (25.6)
Advisor Services (6) 6% 10% 65.7 59.8 60.0 48.5 52.2
Total net new assets 47% 200% $ 124.8 $ 41.6 $ 139.7 $ 145.9 $ 26.6
Net market gains (losses) (8%) (65%) 89.4 256.2 134.2 (42.7) 125.3
Net growth 9% (28%) $ 214.2 $ 297.8 $ 273.9 $ 103.2 $ 151.9
New brokerage accounts (7)
(in thousands, for the year ended) 4% 1% 972 960 900 1,138 829
Clients (in thousands)
Active Brokerage Accounts (8) 4% 3% 9,386 9,093 8,787 8,552 7,998
Banking Accounts 9% 8% 985 916 865 780 690
Corporate Retirement Plan Participants (4) (1%) 9% 1,428 1,305 1,571 1,492 1,477