Trust’s quadrupling of assets under custody in last four years serves as proof that today’s advisors need advanced technology to keep their practice competitive
DENVER (December 8, 2009) – Trust Company of America, a specialized provider of asset custody and technology services to fee-based Registered Investment Advisors, today announced that its total assets under custody (AUC) has surpassed $9 billion. This milestone marks a year in which Trust began at $7.1 billion assets under custody, crossed the $8 billion mark in the third quarter of 2009, and passed $9 billion in November.
Despite the downturn in markets and the global recession, Trust has continued to grow rapidly in the last several years. Trust has enjoyed a 35.7% compounded annual growth rate (CAGR) in assets under custody over the last four years. The company’s total assets at the end of the first quarter in 2005 registered a mere $2.3 billion – meaning Trust has nearly quadrupled in assets under custody in the last four years.
“Trust’s rapid and sustained growth serves as proof that today’s advisors need advanced technology to keep their practices competitive,” said Terry Reitan, Trust Company of America president and CEO. “Not only do we supply that difference-making technology, we provide a level of personalized services that is best in class of the industry, along with a pledge to not compete with our advisor clients.”
Trust’s institutional advisor services, which provides custody, trading and back-office services to fee-only Registered Investment Advisors, represents close to 90% of Trust assets and is largely responsible for the company’s growth. The growth is fueled by both new clients who recognize the significant business advantages that the company’s high-efficiency trading technology delivers, as well as existing clients who grow their practices by leveraging the many practice efficiencies of the Trust solution. Specifically, there is an increasing demand for the scalability of Trust’s turn-key asset management support program – including support for money managers who sell through others and back-office management for advisors who offer their investment program on broker-dealer platforms.
“The recent slump in the market put a bright spotlight on the importance of efficiency and scalability for financial advisors,” Reitan said. “Inefficiencies can be hidden when times are good, but when markets are down, the efficiency our technology provides becomes invaluable.”
By providing advisors with industry-leading client service and advanced technology that optimizes an advisor’s trading, custody and back-office processes, Trust makes firms more successful and makes advisors’ lives easier.
