Fifth Third Wealth Advisors Surpasses $1 Billion in Assets Under Management

Rhea-AI Summary

Fifth Third Bank's independent Registered Investment Advisor, Fifth Third Wealth Advisors, surpasses $1 billion in assets under management in under 18 months. The national practice offers a hybrid model for advisors, combining flexibility with access to trust powers, credit, and planning through Fifth Third.

Insights

Financial Analyst

The achievement of Fifth Third Wealth Advisors in surpassing $1 billion in assets under management (AUM) within 18 months of its inception is a significant indicator of the firm's growth trajectory and operational success. This performance is particularly notable given the competitive landscape of the Registered Investment Advisor (RIA) market, where a minority of firms manage to exceed $750 million in AUM, as per the Datos Insights report. The rapid accumulation of AUM can be attributed to the firm's strategic positioning and the appeal of its hybrid model, which combines the flexibility of an independent platform with the resources of a larger institution.

From a financial perspective, reaching this milestone can have positive implications for the parent company, Fifth Third Bancorp's stock valuation. Investors may view this as a sign of diversification and strengthening of the wealth management segment, which could lead to increased investor confidence and potentially an uptick in the stock price. However, the long-term sustainability of this growth depends on the firm's ability to maintain a high level of service, client retention and the capacity to continue attracting high-net-worth individuals and institutional clients.

Market Research Analyst

The expansion of Fifth Third Wealth Advisors is indicative of a broader trend in the financial services industry, where clients are increasingly seeking personalized investment solutions and comprehensive wealth management services. The firm's ability to operate nationally, unconstrained by the bank's regional footprint, suggests a strategic move to capture a larger market share across the country. This approach aligns with consumer preferences for tailored financial planning and the convenience of digital platforms that transcend geographical limitations.

Moreover, the emphasis on complete back-office support and dedicated onboarding resources reflects an industry shift towards enhancing the client experience and operational efficiency. By streamlining the transition process for advisors, Fifth Third Wealth Advisors can potentially attract top talent from competitors, thereby strengthening its service offerings and competitive edge. The firm's model, which emphasizes the 'look and feel' of an independent boutique, may resonate well with clients who value a personalized approach but also seek the security and breadth of services offered by an established bank.

Economist

The dynamics of asset accumulation within Fifth Third Wealth Advisors offer insights into the broader economic context of wealth management. The firm's rapid growth in AUM during a period of economic uncertainty and market volatility reflects a potential shift in investor behavior, with a preference for wealth advisors that can provide a stable and diversified investment approach. The success of such firms can be seen as a microcosm of the larger economy, where capital tends to flow towards entities that can offer both innovation and stability.

Furthermore, the hybrid model adopted by Fifth Third Wealth Advisors may be indicative of an evolving economic landscape where traditional banking services are increasingly integrated with investment advisory services to meet the complex financial needs of modern clients. This integration can create economies of scale and scope, potentially leading to cost efficiencies and enhanced revenue streams for the parent company. It's important to monitor whether this growth in AUM translates to improved bottom-line performance for Fifth Third Bancorp in the coming quarters.

CINCINNATI--(BUSINESS WIRE)-- In less than 18 months since announcing its launch, Fifth Third Bank’s independent Registered Investment Advisor, Fifth Third Wealth Advisors, has exceeded $1 billion in assets under management (AUM).

“This milestone is a result of the dedication of our teams who bring the utmost in tailored solutions and service and their clients who place their trust in us,” said Eric Housman, president Fifth Third Wealth Advisors.

Fifth Third Wealth Advisors currently has seven teams serving clients across the country regardless of geographic location. The national practice looks beyond the traditional Fifth Third regional boundaries and is not restricted by the Bank’s footprint when recruiting.

According to Datos Insights U.S. Registered Investment Advisor Landscape Report, more than 5,000 RIAs serve clients in today’s wealth markets, but less than 20 percent have more than $750 million in AUM.

Housman says that Fifth Third Wealth Advisors hybrid model offers advisors the ability to take advantage of Fifth Third Wealth Advisors’ flexible investment management platform while also providing access to trust powers, credit and planning through Fifth Third. Complete back-office support and dedicated onboarding resources provide advisors with a seamless transition.

“We believe we offer the look, feel and nimbleness of an independent boutique backed by a top-performing regional bank. We give our teams more time to focus on clients and deepening client relationships,” he added.

Learn more about Fifth Third Wealth Advisors at FTWA.com or follow on LinkedIn.

About Fifth Third

Fifth Third is a bank that’s as long on innovation as it is on history. Since 1858, we’ve been helping individuals, families, businesses and communities grow through smart financial services that improve lives. Our list of firsts is extensive, and it’s one that continues to expand as we explore the intersection of tech-driven innovation, dedicated people and focused community impact. Fifth Third is one of the few U.S.-based banks to have been named among Ethisphere’s World’s Most Ethical Companies® for several years. With a commitment to taking care of our customers, employees, communities and shareholders, our goal is not only to be the nation’s highest performing regional bank, but to be the bank people most value and trust.

Fifth Third Bank, National Association, is a federally chartered institution. Fifth Third Bancorp is the indirect parent company of Fifth Third Bank, and its common stock is traded on the NASDAQ® Global Select Market under the symbol "FITB." Investor information and press releases can be viewed at www.53.com.

Fifth Third Wealth Advisors LLC is an investment adviser registered with the Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply any level of skill or training. Additional information about Fifth Third Wealth Advisors LLC is available on the SEC’s website at www.adviserinfo.sec.gov.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240329395848/en/

Adrienne Gutbier (Media Relations)

adrienne.gutbier@53.com | 513-534-8038

Matt Curoe (Investor Relations)

matt.curoe@53.com | 513-534-2345

Source: Fifth Third

FAQ

How much assets under management (AUM) has Fifth Third Wealth Advisors exceeded?

Fifth Third Wealth Advisors has exceeded $1 billion in AUM.

What model does Fifth Third Wealth Advisors offer to advisors?

Fifth Third Wealth Advisors offers a hybrid model that provides flexibility along with access to trust powers, credit, and planning through Fifth Third.

How many teams are currently serving clients under Fifth Third Wealth Advisors?

Fifth Third Wealth Advisors currently has seven teams serving clients across the country.

According to Datos Insights U.S. Registered Investment Advisor Landscape Report, what percentage of RIAs have more than $750 million in AUM?

Less than 20 percent of RIAs have more than $750 million in AUM according to Datos Insights U.S. Registered Investment Advisor Landscape Report.

What support resources does Fifth Third Wealth Advisors provide to advisors?

Fifth Third Wealth Advisors offers complete back-office support and dedicated onboarding resources to provide advisors with a seamless transition.

What benefits does the hybrid model of Fifth Third Wealth Advisors offer to advisors?

The hybrid model of Fifth Third Wealth Advisors offers advisors the look, feel, and nimbleness of an independent boutique backed by a top-performing regional bank, allowing more time to focus on clients and deepening client relationships.