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Securities Regulation Daily Wrap Up, SEC NEWS AND SPEECHES—Independent advisers report $128 trillion in assets under management as of year-end 2023, (May 16, 2024)

By Suzanne Cosgrove

New SEC report on investment advisers illustrates a “phenomenal” rate of growth in the industry, the Commission’s analytics office says.

A new investment adviser statistics report released Wednesday by the SEC’s Division of ...

By Suzanne Cosgrove

New SEC report on investment advisers illustrates a “phenomenal” rate of growth in the industry, the Commission’s analytics office says.

A new investment adviser statistics report released Wednesday by the SEC’s Division of Investment Management reveals more than 15,000 registered investment advisers had approximately $128 trillion in regulatory assets under management (RAUM) as of December 2023, as the number of SEC-registered investment advisers (RIAs) and exempt reporting advisers (ERAs) also posted steady growth over the past 10 years.

The tallies in the report are based on aggregated data filed by investment advisers on the SEC’s Form ADV.

“Providing accessible, usable, aggregated data to the public is a critical part of the SEC’s role,” said SEC Chair Gary Gensler in a release. “This new report will give the public a clearer view into the investment advisory industry,” he added. “Such SEC-published data help the public better understand how our economy and securities markets function.”

Breaking down the data. According to report statistics, one of the fastest-growing groups in the registered investment advisers category is large advisory firms, which grew to 13,548 firms as of 2023, from 9,078 advisers in 2013 and just three in 2009. In a similar upward trajectory, the $128.8 trillion total in aggregate RAUM (both discretionary and nondiscretionary) reported by RIAs in 2023 was a steep increase from the $61.8 trillion counted in 2013 and from $39.4 trillion in 2009.

Additional data in the report reinforces a picture of industry growth. For example, a table detailing the percent of aggregate regulatory assets under management attributable to RIAs shows 28.6 percent had $1 trillion or more RAUM in 2023, compared with 10.7 percent in 2013, just 10 years earlier. At the same time, the category of advisers with “under $100 million” in RAUM shows a zero percent total in 2023.

The type of clients served by investment advisers also has evolved, as has the size of their investments, according to the SEC’s statistics. For example, high net worth individuals represented $12.9 trillion in aggregate RAUM reported by RIAs as of December 2023, a total that was more than double the amount recorded in 2013. In contrast, insurance companies comprised $7.5 trillion under management by RIAs in the most recent period, while pension funds represented $7.4 trillion.

Growth brings change. “Form ADV data offers a uniquely comprehensive view of the asset management industry,” said Tim Husson, head of the SEC’s Division of Investment Management’s analytics office. “The statistics in this report illustrate the phenomenal growth and changing nature of the advisory business.”

The report, which the Commission said will be updated on an annual basis, is designed to give the public a view into the investment advisory industry, including its business activities, client composition and the types of funds advised.

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