Advisers boost assets by 21%, helped by new clients, market gains | InvestmentNews by Liz Skinner
Published: September 17 2014
The latest performance results are in, and 2013 was a great year to be in the financial advice business.
Financial advisory firms boosted assets under management last year by 21% to an average of $502 million, the 2014 InvestmentNews Financial Performance Study of Advisory Firms found. That’s up from $414 million in 2012.
AUM, in fact, has increased an average of 20% every year since 2009.
About 12% of last year’s increase was due to new assets from new clients, 10.6% from investment performance and 4.3% from new assets from existing clients. About 2.9% of assets walked away with clients who left over the year, and 3% of assets were lost from existing clients’ asset reductions, such as through distributions, according to the new study, which analyzed financial information and other data submitted by more than 300 firms.