Trust Updates Archive
(Feb. 11, 2016 --Chicago, IL) -- Gross revenue growth remained in positive territory in the third quarter of 2015, even as assets declined, according to Trust Performance Report's quarterly update. TPR is a sister publication of Trust Regulatory News. Based on TPR's fourth quarter projections, 2015 is expected to be the sixth consecutive year of quarter-to-quarter revenue growth.
In the third quarter, 3 out of 4 institutions reported positive revenue growth, while only 1 in 3 reported assets gains. Midtiers reported some of the best asset and revenue Performance.
For a complete copy of the Third Quarter report click here.
Asset growth rates, which in 2015 have been declining, nevertheless outperformed stock market indices. Declines in total industry assets resulted from the performance among the largest institutions, Peer Group 1 (assets greater than $100 billion) -- reflecting activity in nonmanaged accounts. Only seven of the industry's 26 giants reported assets gains. A notable exception among large institutions continues to be TIAA-CREF Trust Company, which reported asset growth from new accounts of 194 percent in 2015.
High returns on growing managed assets are boosting revenues, offsetting the income impact that institutions might otherwise feel from declines in total assets. Managed assets are generally held in "traditional" account categories. These include personal trusts (including foundations), investment management agencies, and employee benefit trusts, or P.I.E.
Traditional assets comprise only 13 percent of total industry assets; however, they generate 50 percent of total gross revenues because they have significantly higher returns than do assets held in other account categories.
For more detailed information see the upcoming issue of Trust Regulatory News.
Trust Performance Report -- annual data book, published in May, provides both industry and peer group performance data by assets, gross revenue, net income, and account category. Subscribers receive quarterly updates. TPR findings are based on its annual survey of the top 1500 fiduciary institutions. For more best practices and benchmark data see TPR. For information on ordering click here or the link below.
Fiduciary Earnings & Expenses -- annual data book comparing performance among independent trust companies to that of OCC national trust companies and to bank trust divisions. For information on ordering click here or the link below.
For sample copies of both publications click here and then, on the web page, check "Trust Performance Report."
No statement in this issue is offered as or should be construed as legal opinion or advice or as an indicator of future performance.
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