Independent Advisors at Schwab Institutional's Impact(R) Conference Forecast Strong Economic Growth
September 28 2005 - 10:00AM
PR Newswire (US)
SEATTLE, Sept. 28 /PRNewswire/ -- Most independent investment
advisors who advise the affluent are forecasting significant to
moderate growth for the economy (73%) over the next two years, with
58% predicting stock market returns of 5-10 percent in 2006. When
it comes to their own growth prospects, however, more than 78
percent of those surveyed expect from 10-35 percent growth in 2006,
according to a survey conducted this week at the 15th annual IMPACT
conference, hosted by Schwab Institutional. Schwab Institutional, a
leading provider of custodial, operational and trading support for
independent fee-based investment advisors, surveyed advisors during
IMPACT, one of the largest annual gatherings of independent
investment advisors in the nation. Among advisors' economic views:
-- Nine out of 10 advisors expect the stock market to rise in 2006,
but 78 percent forecast less than 10 percent returns. -- Some 84
percent of advisors expect energy prices to have the greatest
impact on economic growth in the next two years; conversely,
terrorism and Hurricane Katrina were viewed as having little or no
impact on the economy. -- More than 65 percent of advisors feel
that interest rates would be among the top concerns of their
clients in the coming year. "It's clear that independent investment
advisors have a positive outlook for the economy, but they are even
more bullish about their businesses in the year ahead," said Ann
Simon, vice president of Schwab Institutional. "Our goal is to help
them be smarter, grow faster, and take their clients and their
businesses to new heights." When looking at their businesses: --
Advisors cited generating positive returns (70%) and adequately
meeting retirement needs (70%) as top concerns for their clients.
-- Retaining clients and growing their client base were named as
the top business challenges for advisors in the year ahead (77% and
71% respectively); improving profitability was seen as very
important by 55 percent of advisors. -- Although the advisor
population is aging, 40 percent of advisors surveyed said planning
for transition/succession was not a top business challenge for them
right now. About Schwab Institutional Schwab Institutional, a
division of Charles Schwab & Co. Inc., is a leading provider of
custodial, operational and trading support for independent
fee-based investment advisors. Client assets custodied with Schwab
Institutional increased 18 percent to $365 billion between June 30,
2004 and June 30, 2005. These assets, managed by the approximately
5,000 independent advisor firms Schwab Institutional serves,
represent approximately one-third of total customer assets
custodied with The Charles Schwab Corporation as of June 30, 2005.
About Charles Schwab The Charles Schwab Corporation (NYSE / Nasdaq:
SCH), through its operating subsidiaries, provides securities
brokerage and financial services to individual investors and the
independent investment advisors who work with them. With over 7
million individual investor accounts and more than $1 trillion in
client assets, The Charles Schwab Corporation is one of the
nation's largest financial services firms. Its subsidiary Charles
Schwab & Co., Inc. (member SIPC) provides a complete range of
investment services and products, including an extensive selection
of mutual funds; financial planning and investment advice;
retirement plans; referrals to independent fee-based investment
advisors; and custodial, operational and trading support for
independent fee-based investment advisors through its Schwab
Institutional division. Its subsidiary Charles Schwab Bank (member
FDIC) provides banking and mortgage services and products. The
corporation's other operating subsidiaries include U.S. Trust
Corporation (member FDIC) and CyberTrader(R), Inc. (member SIPC)
.These companies' Web sites can be reached at
http://www.schwab.com/, http://www.schwabbank.com/,
http://www.ustrust.com/, and http://www.cybertrader.com/.
(0905-1874) DATASOURCE: Charles Schwab CONTACT: Alison Wertheim of
Charles Schwab, +1-415-636-5812, or ; or Tyler Bradford of Makovsky
& Co., +1-212-508-9637, or , for Charles Schwab Web site:
http://www.schwab.com/
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