In addition, the data pointed out that large standouts also collect more revenue on every dollar managed, 84 basis points compared with 74 basis points among other large firms, and 50 percent of standouts compared with 44 percent of the others are more likely to collect a minimum fee.
“The data reinforce what we’ve long believed to be best practices: well-managed firms are investing in themselves, their people and platforms to build a foundation for a larger, more scalable and successful future,” said Vanessa Oligino, director of business performance solutions at TD Ameritrade Institutional, in a prepared statement.
TD Ameritrade found that large standout RIAs scrutinize their technology spending and focus on generating high returns on their investment. The top performers, it said, are more likely to adopt tools that can increase efficiency and deliver a better client experience, including financial planning software, digital document management systems and online client portals.
“Standout performance is the product of sound strategic planning, an intense focus on operations,” Oligino said. “And, just as important, top-tier firms show they have the discipline to follow through on those plans over time, through thick and thin.”