Charles Schwab took in $9.9 billion last month, but the new client flows failed to boost its overall AUM appreciably.
Schwab's latest monthly activity report reveals that even though investors poured almost $10 billion into the company in July, trading losses of $16 billion brought its overall managed assets back down to March levels.
In fact, since April, close to 2% of Schwab's AUM has gone away.
New account formation tailed off a full 8% on a month-over-month basis.
Schwab has been spinning this as demonstrating solid year-over-year growth, and in that respect they're right: AUM is up a solid 16% and new account formation has accelerated.
Trading volume has also increased month over month and year over year.
But in the short term, the company's clients have now absorbed significant losses for three months in a row now.
If they keep pushing fresh capital into the Schwab platform, great. If not, we could look back to last month as a turning point for flows throughout the industry.