The registered investment adviser (RIA) market is experiencing explosive growth--assets under management have shot up from $950 billion in 2005 to $1.4 trillion at the start of 2007, according to Cerulli Associates. Schwab Institutional says that the median growth of RIA firms' assets was 20 percent in 2006. Such statistics are motivating many custodian banks to expand their offerings as service providers.
In 2005, Pershing, a Jersey City, N.J.-based subsidiary of Bank of New York Mellon Corp., rebranded its Pershing Investment Manager Services unit as Pershing Advisor Solutions (PAS) to reflect a new strategic focus--offering customized services to RIAs. Its number of RIA relationships grew to 480 by the end of last year, up from 426 in 2006 and 385 the year prior. The unit's assets under management rose to over $73 billion by year-end 2007, up from $59 billion in 2006 and $41 billion in 2005.
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