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Ally Invest Assets Under Management (AUM)
Ally Invest total assets under management. Ally Invest AUM for 2017: client assets, brokerage accounts, and mutual funds.
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Ally Invest Assets Under Management (AUM)
Ally Invest recently purchased TradeKing, and the old broker’s accounts and assets have been transferred to Ally. Most recent figures point to roughly 260,000 funded accounts. In these accounts, there are nearly 20,000 trades placed every market day that generate commissions for the company.
Although Ally Invest is a small broker by industry standards, the firm nevertheless has roughly $4.7 billion in client assets. Of this amount, approximately $1.3 billion is in cash or on deposit in the broker’s FDIC-sweep program. Assets that are actually managed by Ally are much smaller. As of May 2017, the broker-dealer managed just $18 million in discretionary accounts.
Ally’s AUM is smaller than expected given its very competitive robo-advisory service. The broker charges a very low 0.30% and requires just $2,500 to start the program.
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Ally Financial
Ally Invest is owned by Ally Financial, which operates banking, insurance, mortgage financing, and auto loans. Because Ally’s stock price (ticker symbol ALLY) can be and is affected by operations in all of these areas, it may be helpful to analyze the financial behemoth’s data points.
The banking unit of Ally last reported $67 billion in customer deposits, far outstripping its brokerage counterpart. This amount includes a growth of 20% in just one year. The number of customers has risen 16% and now includes 1.2 million deposit account holders.
In 2016, Ally’s auto financing department originated $36 billion in auto loans. The company’s insurance and mortgage financing segments are much smaller. They contributed just $84 million in revenue on Ally’s most recent financial statements.
All of this business has created over a billion dollars in pre-tax income for the company every year, which has led to share buybacks and dividend payments.
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Many other brokers in the industry aren’t owned by a bank or financial conglomerate. Fidelity and Vanguard are two examples. Fidelity has total client assets of $5.7 trillion (yes trillion with a t), far surpassing Ally Invest. Comparing the two figures shows that Ally Invest is actually just 0.08% the size of Fidelity when measured in terms of client assets ($4.7b / $5.7t).
Fidelity also far outweighs Ally in terms of investment accounts. Fidelity has over 24 million currently open, which is almost a hundred times as many accounts as Ally Invest has.
In terms of assets under management, Fidelity again is light years beyond Ally with $264 billion currently managed. Compared to Ally’s $18 million, Fidelity is 14,667 times as large.
Fidelity customers also place over half a million commissionable trades every market day. This is 25 times as many as Ally Invest clients place. Because Fidelity’s trading fee is the same or higher than Ally’s, Fidelity is able to generate more revenue from trading.
Even when compared against Ally Financial (all Ally operations), Fidelity still generates more operating revenue. Fidelity recently reported $3.5 billion in operating income, while Ally Financial had $1.6 billion.
Updated on 8/31/2017.
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