FT Unveils Top 300 Independent RIAs of 2018

The Financial Times today (June 28) published the 2018 edition of the Financial Times 300 Top Registered Investment Advisers. The ranking of top U.S. RIAs was developed in collaboration with Ignites Research, a subsidiary of the FT that provides business intelligence on the investment management industry.

The list represents an elite group of investment firms, with the average FT 300 firm in existence for 23 years and managing $4 billion in assets. The top advisers hail from 38 states and Washington, D.C.

The fifth annual FT 300 ranking illustrated how the top RIAs are getting bigger. The FT 300 companies cumulatively saw their assets under management (AUM) rise 35% in 2017, thanks to a combination of stock market gains, client growth and mergers. RIAs with $1 billion or greater in AUM rose from 57% of 2017’s FT 300 to 74% of this year’s list.

Consolidation is making some of the big advisers even larger. Following a record 152 mergers in 2017, this year began with a record 47 deals among RIAs in the first quarter (compared with 46 in Q1 2017), according to DeVoe & Co, a provider of consulting and banking services to advisers.

As many RIAs enjoy growth and geographic spread, they’ve prioritized technology, such as software for managing investment portfolios or delivering client statements, to boost productivity. This year, the most common business challenge cited by the FT 300 is ensuring technology is up-to-date, named by 59% of honorees; gaining new clients was a distant second, identified by 33% of the RIAs.

In addition, FT 300 members often try to differentiate themselves with various specialties. Many stress their expertise in helping retirees, for example, while others specialize in helping entrepreneurs or in providing comprehensive ‘family office’ services. Larger advisory firms are more likely to have multiple specialties.

Ignites Research created the methodology and ranked the advisers. Advisory practices reporting $300 million or more in assets were allowed to apply. The FT then scored candidate firms on six criteria: AUM, AUM growth rate, years in existence, advanced industry credentials, online accessibility and compliance records.

The full report is available for viewing at this link.

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