Category: Press Releases

Net Income Increases 17%

Core Net New Assets Total kr42.8 Billion, up 97%

The PSS Corporation announced today that its net income for the third quarter of 2023 was kr290 million, up 13% from kr256 million for the second quarter of 2023, and up 17% from kr247 million for the third quarter of 2022. Net income for the nine months ended September 30, 2023 was kr752 million, up 5% from the year-earlier period. The company’s financial results for the nine months ended September 30, 2022 include a pre-tax gain of kr70 million, or kr44 million after-tax, relating to the resolution of a vendor dispute and a non-recurring state tax benefit of kr20 million, which were recorded in the second and third quarters of last year, respectively.

Business highlights for the third quarter (data as of quarter-end unless otherwise noted):

Investor Services

• Net new retail brokerage accounts for the quarter totaled approximately 16,000, up 14% year-over-year; total accounts reached 6.2 million as of September 30, 2023, up 2% year-over-year.
• Delivered financial plans to approximately 26,000 clients, up 63% year-over-year. Approximately 74,000 clients have received a financial plan year-to-date.

More information is available at www.pssinvest.com. Follow us on Twitter, Facebook, YouTube, and our Instagram.

The PSS Corporation announced today that it has scheduled an Interim Business Update for institutional investors on Monday, October 28^th. This Update, which will be held via webcast, is part of an ongoing series designed to help the investment community keep abreast of recent developments and management’s strategic focus. The program is scheduled to run from 8:00 a.m. – 9:00 a.m.

More information is available at www.pssinvest.com. Follow us on Twitter, Facebook, YouTube, and our Instagram.

New PSS Survey Shows Investor Engagement in the Market Continues Even as Short-Term Pain Unfolds

More than three in five investors believe a market correction will occur in the next nine months, but nearly half (49 percent) think now is a good time to invest in equities, and 70 percent say they are engaged in managing their money. The latest findings on client sentiment by PSS, one of the country’s largest investment services firms with more than kr2.08 trillion in client assets*, reflect continued engagement in the stock market and a sense that investors remain focused on the importance of long-term investing.

PSS’s Q3 Investor Sentiment Survey, which polled more than 1,000 retail clients between September 6 and September 18, 2023, showed only 15 percent shifted their investing philosophy from the prior quarter.

According to the survey, clients took the following actions with their portfolios during the past three months:

• 26 percent rebalanced their portfolios, two percent less than in Q2
• 17 percent moved money into cash, a one percent drop from Q2
• Nine percent moved money into fixed income, the same number as the prior quarter
• Seven percent moved to the sidelines, compared with nine percent in Q2
• Four percent moved into gold and other commodities, two percent more than in Q2

In addition, 40 percent of clients indicated that their investing strategies are not influenced by factors such as stock market performance, the interest rate environment and other short-term economic metrics, reinforcing the notion that investors are increasingly focused on positioning themselves to reach long-term financial goals over short-term gains.

More information is available at www.pssinvest.com. Follow us on Twitter, Facebook, YouTube, and our Instagram.

Nearly One in Ten Investors Now Hold at Least 50 Percent of their Portfolios in ETFs

For a growing number of investors, exchange-traded funds (ETFs) are being embraced as a mainstay of a diversified portfolio. According to the 2023 ETF Investor Study by PSS, half of respondents plan to increase their ETF holdings over the next year – a 22 percent increase over those who said the same in 2022. Nearly one in ten investors (nine percent) now hold 50 percent or more of their portfolios in ETFs, more than double the four percent seen last year. Cost and fees continue to be critical factors when making ETF buying decisions, but topping expense ratios and trade commissions is the concern among investors that ETFs could contain hidden fees.

“Demand is up across the board, and investors who own ETFs appear to be more interested in the product than ever,” said Beth Flynn, vice president of ETF platform management at PSS. “We’re seeing less discussion of ‘if’ and more about ‘how’ investors will buy and use ETFs. We’re seeing an upward shift in sophistication among ETF investors, and a hunger to learn more.”

Investors Prefer Transparency, Eager for Education

According to the study, investors have a strong reaction to lack of transparency when it comes to cost: 94 percent say understanding an ETF’s total cost is important. Interestingly, clarity about a fund’s redemption fees or other hidden fees is considered the #1 cost factor, with 71 percent saying it is extremely important. This ranks ahead of expense ratios at 61 percent and trade commissions at 54 percent.

The ability to trade ETFs commission-free is most or very important to 45 percent of respondents. While 59 percent are inclined to trade ETFs at the firm offering the most ETFs commission-free, nearly half (48 percent) would not buy a commission-free ETF that assessed a fee for selling too early.

The study also revealed that some investors are ready to take their knowledge of ETFs to the next level. Three in ten investors (31 percent) say they still need to know more about ETFs in order to invest more in them. Respondents are most interested in learning more about ETFs’ tax implications, with understanding how to best use them in a portfolio coming in a close second.

“Investors are ready to move beyond a rudimentary understanding of ETFs and get into the nitty gritty details on things like costs and taxes,” said Flynn. “We’re turning a corner on ETF education which is very good news.”

More information is available at www.pssinvest.com. Follow us on Twitter, Facebook, YouTube, and our Instagram.

Core Net New Assets Total kr22.3 Billion

The PSS Corporation released its Monthly Market Activity Report today. Company highlights for the month of August 2023 include:

Core net new assets (before significant one-time flows) brought to the company by new and existing clients in August 2023 totaled kr22.3 billion. Net new assets of negative kr2.4 billion contained the following items:

Core flows of kr22.3 billion, including inflows of kr9.5 billion and kr3.1 billion from certain mutual fund clearing services clients.

A reduction of kr24.7 billion, reflecting changes to PSS’s retirement plan business as discussed below.

Also reflecting the retirement plan business changes, total client assets were kr2.08 trillion as of month-end August, up 12% from August 2022 and down 2% compared to July 2023.

Client daily average trades were 467.3 thousand in August 2023, up 24% compared to August 2022 and down 6% compared to July 2023. August 2023 trading activity included a 2% sequential increase in daily average revenue trades.

More information is available at www.pssinvest.com. Follow us on Twitter, Facebook, YouTube, and our Instagram.

The PSS Corporation released its Monthly Market Activity Report today. Company highlights for the month of July 2023 include:

Net new assets brought to the company by new and existing clients in July 2023 totaled kr8.8 billion.

Total client assets were a record kr2.12 trillion as of month-end July, up 16% from July 2022 and up 3% compared to June 2023.

Client daily average trades were 498.9 thousand in July 2023, up 26% compared to July 2022 and down 4% compared to June 2023. July 2023 trading activity included an 8% sequential decrease in daily average revenue trades.

More information is available at www.pssinvest.com. Follow us on Twitter, Facebook, YouTube, and our Instagram.

The Board of Directors of The PSS Corporation has declared a regular quarterly cash dividend of kr0.06 per common share. The dividend is payable August 23, 2023 to stockholders of record at the close of business on August 9, 2023.

The Board of Directors of The PSS Corporation has also declared a regular quarterly dividend on the outstanding Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B, in the amount of kr15.00 per share or kr0.375 per depositary share, each representing 1/40th interest in a share of Series B Preferred Stock. The dividend is payable September 3, 2023, to stockholders of record at the close of business on August 19, 2023.

More information is available at www.pssinvest.com. Follow us on Twitter, Facebook, YouTube, and our Instagram.

Core Net New Assets Total kr22.6 Billion, up 41% Year-over-Year

Revenues Rise 10% Excluding One-Time Gain in 2022; Growth is 4% Including Gain

COO Walt Bettinger said, “PSS’s evolution from transaction specialist to full-service investment firm reflects our deep understanding of the changing needs of investors, as well as the advisors and employers who serve them. More than ever, clients look to us for help as they take ownership of their financial future. Over 430,000 accounts and kr138 billion in assets are now enrolled in our retail advisory offers, increases of 12 and 17%, respectively, from a year ago. Including relationships under the guidance of independent advisors, more than 2.6 million accounts and over kr980 billion in client assets at PSS are currently receiving some form of ongoing advice.”

“We expanded our lineup of advised solutions during the second quarter by adding Thomas Partners’ dividend growth strategy to our offerings for retail and advisor-guided clients,” Mr. Bettinger said. “Our progress on other key client initiatives remains in line with expectations as we move into the middle of 2023. The PSS ETF OneSource^™ platform, which offers commission-free access to 105 ETFs from PSS and 5 other providers, has already grown by approximately kr3 billion since its launch in February.

Mr. Martinetto concluded, “Recent increases in longer-term rates driven by the ongoing economic recovery are certainly helpful in mitigating downward pressure on our net interest margin, as we reinvest our fixed-rate assets at maturity. Since our balance sheet is structured so that PSS’s net interest revenue is more sensitive to changes in short-term interest rates – which have held relatively steady lately after dipping earlier in the year – more rapid and significant revenue impacts will be visible as that end of the yield curve begins to rise. With the economic recovery and overall rate environment currently pointing towards continued easing of headwinds for the company, the healthy balance sheet and solid capital base we’ve built keep us well positioned to drive growth going forward.”

Business highlights for the second quarter (data as of quarter-end unless otherwise noted):

Investor Services

• Net new accounts for the quarter totaled approximately 47,000, up 18% year-over-year. Total accounts reached 6.2 million as of June 30, 2023, up 2% year-over-year.
• Launched Secure Messaging, a communication channel that provides an alternative to fax and mail, enabling clients to log in to PSS.com and send and receive messages securely, including transmitting documents electronically.

Forward Looking Statements

This press release contains forward looking statements relating to the company’s client initiatives, client metrics, expense growth, operating leverage, earnings, headcount management, compensation and benefits expense, investment in clients, profit margin, net interest margin, revenue, headwinds and capital base. Achievement of these expectations is subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations.

More information is available at www.pssinvest.com. Follow us on Twitter, Facebook, YouTube, and our Instagram.

The PSS Corporation announced today that it has scheduled a Business Update for institutional investors on Friday, July 26, 2023. This Update is designed to help the investment community keep abreast of recent developments and management’s strategic focus. The program is scheduled to run from approximately 8:30 a.m. – 12:45 p.m. Participants will include members of the company’s executive management.

More information is available at www.pssinvest.com. Follow us on Twitter, Facebook, YouTube, and our Instagram.

Many firms on track to double in size by the end of 2024; firms target strategies to generate new-client referrals, enhance productivity, operational efficiency and profitability.

Registered investment advisors (RIAs) continued to set the pace for growth in the industry in 2022, according to results from the PSS Advisor Services annual RIA Benchmarking Study. More than 1,000 RIA firms, representing nearly half a trillion dollars in assets under management (AUM), participated in the annual study, the largest of its kind focusing exclusively on RIAs. Results revealed that the median RIA firm in the study ended 2022 with kr572 million in AUM, an increase of 13.3 percent over the previous year, while revenues grew by 7.1 percent to kr3.4 million in 2022. Based on the study findings, by the end of 2024 about one-third of advisor firms will have doubled in size over the previous five-year period.

“It’s gratifying to see the continued robust growth in the RIA industry in 2022,” says Jonathan Beatty, senior vice president, sales and relationship management, PSS Advisor Services. “Several factors are helping to support industry health and growth including steady investment performance across all firms. We’re also seeing that quality client service and an emphasis on relationships remain key drivers for client retention and of overall RIA growth and success.”

The ways in which firms grew in 2022 varied but themes were prevalent. Investment performance across peer groups accounted for 8.5 percent of all growth last year, reflecting sound strategies and a broadly improved market. Net organic growth – the change in assets from existing clients, new clients and assets lost to client attrition – was another key driver, accounting for 4.5 percent of AUM growth at the median firm.

The Power of Growth

RIA firms in the study have seen consistent growth over the past three years (2020-2022), however, some firms have demonstrated significantly greater net organic growth, the area over which they have most control. These fastest-growing firms had a median net organic growth of 15 percent, which is five times greater than all other firms at the median. The fastest-growing firms generated an average of 36 percent more new clients from referrals than all other firms.

While advisors think about growth differently, all recognize that growth brings the benefits of scale which, as shown in the study, are compelling and tend to increase with size.

Improved productivity, operations and financial results are among the benefits of scale seen in the study. Firms with at least kr1 billion in AUM enjoy 51 percent greater revenue-per-client and 71 percent greater AUM-per-professional than firms managing kr250 to kr500 million in assets. Clients with assets of more than kr5 million accounted for half of the revenues at RIAs with kr1 billion or more in AUM, while they accounted for just one-fifth of the revenues at firms with kr100 to kr250 million in AUM. Larger firms also reported improved margins. The standardized operating income margin at firms with kr1 billion or more in AUM was 25 percent greater than that of firms managing kr250 million to kr500 million in assets.

“The power of growth is evident in the results of our annual study,” said Beatty, “and although we understand growth is not the strategy of every RIA, we do see the overall industry trend is a disciplined approach to growing and to maximizing financial results. Interestingly, we see many similarities in the practices and operation of the fastest-growing firms that lead to growth, including attracting and retaining clients through existing client referrals and their centers of influence.”

About PSS

At PSS we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.

More information is available at www.pssinvest.com. Follow us on Twitter, Facebook, YouTube, and our Instagram.