A new report from the U.S. Securities Industry Association reveals that average retail broker production increased 12% in 2004, and client portfolios gained around 16%.

New research from the SIA shows that the average registered rep’s production increased 12% in 2004 to US$418,003 from 2003’s $372,963. Median gross production jumped 12.8% to US$315,656 from US$279,809 in 2003.

Brokers’ earnings were up a little stronger than their gross production. Average total earnings per rep increased 13.7% to US$174,105 from US$153,182 in 2003. Median total earnings increased 13.2% to US$121,577 from US$107,370 in 2003.

The survey also found that brokers were earning their keep with clients, as the average client’s portfolio increased 16.0% to US$159,932 from US$137,818 in 2003. This far outpaced organic market gains, as the Dow Jones Industrial Average gained 3.1% in the year, and the Nasdaq Composite Index rose 8.6%.

Average assets under management per rep continued to increase steadily too, the SIA reports, from US$57,898,675 in 2002 to US$68,206,134 in 2003 to US$73,828,017 in 2004. Each rep serviced an average of 526 accounts in 2004, an increase from 2003’s 517.

The popularity of fee-based products continues to grow with U.S. clients, now accounting for 32.7% of average production, a slight increase from 2003’s 31%. Just nine years ago, this share was well under 10%, the SIA notes. “The popularity of fee-based relationships continues as investors find them to be a more efficient way to manage their investments,” said Steve Carlson, SIA vice president and director of surveys. “The growth has stabilized in recent years, but they continue to appeal to the client who wants a long-term relationship with his broker and who maintains an active account.”

The report also reveals that the average branch size remained consistent at 13.6 reps and five sales assistants; average gross production per branch climbed 17% from US$5.2 million to US$6.08 million; and, the average rep has been in the business for 12.6 years, and with his or her current firm for 9.4 years; and, RR turnover continued to decline, dropping from 19.3% in 2003 to 13.8%.

The survey’s results are based on responses from 32 member firms, which collectively employed nearly 49,000 reps and generated more than $20 billion in gross production during 2004. These firms had 2,830 branch managers and operated 3,395 branches.