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TIAA-CREF Revenue Fiduciary Trust Performance Report Personal Trust Regulatory News Bank A.M. Publishing Bernard Garbo Industry Outperforms Large Institutions in First Quarter

(July 9, 2015 --Chicago, IL) -- The trust business continues to be a tale of two industries, with over 90 percent of institutions outperforming the vast majority of peer group 1, those with more than $100 billion in assets, according to Trust Performance Report's review of first quarter data. TPR is a sister publication of Trust Regulatory News.

For a complete copy of the First Quarter report click here.

Industry assets, as a weighted average, were up only 2 percent in the first quarter, compared to the prior quarter. Compared to the same quarter in 2014 they were up 6 percent; down from 9 percent the prior year.

Gross revenues continue their near six-year run of positive quarter-to-quarter growth. In the first quarter, gross revenues, as weighted average, were up 7 percent. As a peer group, the worst performers were large institutions: 2 percent growth. A notable exception was TIAA-CREF, which, on strong asset growth, reported a 31 percent spike in gross revenues.

The industry reported a better than 2 percent growth in new accounts. Only peer groups 1 and 5 reported declines. On average, 3 out of 5 institutions reported net account growth.

Average managed account growth was 7 percent, compared to a decline of 3 percent for nonmanaged accounts.

Since 2004, traditional trust assets have been declining as a percentage of total assets, while the revenue they generate has been increasing. ("Traditional" assets—personal trusts (including foundations), investment management agencies, and employee benefit accounts, or collectively, P.I.E.)

In 2004, traditional assets represented 22 percent of total industry assets. Since 2010, they have accounted for 14 percent or less. Conversely, revenue generated by traditional accounts has been increasing as a percentage of total revenue from 45 percent to 50 percent.

Revenue Enhancement

When considering revenue enhancement options, industry and peer benchmarks are an essential decisionmaking tool. Fiduciary Earnings & Expenses 2015, a sister publication of Trust Performance Report, provides industry and peer analysis of earnings and expenses.

FEE 2015, available in late September, is based on analysis of some 200 independent trust companies. Data are obtained directly from trust companies.

For more information on FEE 2015, see below. Sample pages are available at click here.

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.

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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