In today’s highly competitive environment for the wealth management industry, standing still is not an option. But what are the drivers of those firms that are seeing growth beyond that of their rivals?
In its first Advisor Growth Study, LPL Financial has taken a data-driven look at what fuels advisor and institutional growth through an analysis spanning six years of proprietary performance data from more than 14,000 advisors, enhanced with supervised machine learning and explainable AI.
At its core is the new Advisor Growth Index which evaluates practices across client acquisition, development, and retention. According to LPL, advisors with high AGI scores increase assets under management at roughly triple the rate of their median peers.
“The AGS is unlike traditional benchmarking tools that rely on self-reported surveys,” explains Matt Enyedi, chief client officer at LPL Financial. “We're drawing from objective data, enhanced through supervised machine learning and artificial intelligence to identify behaviors that lead to sustainable growth.”
The study highlights four behaviours that consistently set top-performing practices apart.
Top advisors set up infrastructure, client mix, and processes to support scale. That means using data to pick one or two strategic priorities, keeping clients skewed toward those with long-term potential, and limiting exposure to decumulation-phase clients.
Leading firms aren’t treating all clients alike. They segment according to AUM, complexity, life stage, growth potential, and fit. The study shows significant growth often comes from the top 10 % by AUM, and a sizable portion from clients with at least $500,000 under management.
Strong performers invest in planning, especially for complex or multigenerational needs, and lean heavily on advisory assets over simple brokerage. When advisors hold 60 %+ of client assets in advisory, the returns are more stable and upward-trending year-over-year.
Growing businesses are intentional in how they bring in new clients. They use data to target prospective clients smartly, build out centers of influence, explore M&A, and refine digital strategies. High-growth practices tend to win 10 %+ new-client growth annually, and the average AUM per new client increases year-over-year.
“In today’s advisory landscape, growth is no longer a luxury, it’s a necessity” says Kraleigh Woodford, executive vice president of growth strategy and enablement. “As the demand for advice continues to build, advisors and institutions will need tools and solutions that help them scale and grow on their terms. We see both advisors and the industry leveraging LPL’s Advisor Growth Study and the Advisor Growth Index as essential tools to inform growth with confidence.”
Five low-cost index ETFs to anchor Trump Accounts as advisors weigh options against 529 and UTMA plans for clients
A bipartisan proposal aimed at aligning advisor compensation rules with modern business structures is headed to the full House.
Vanilla is extending its estate planning tech to Callan Family Office's ultra-high-net-worth business, while WealthFeed's organic growth engine will now be available to roughly 100 advisors at The Mather Group.
“We are helping families take an important first step toward building a financial foundation for the next generation,” said Franklin Templeton CEO Jenny Johnson
Richard Brothers Financial Advisors joins the fee-only RIA, adding its first Maine office and $240 million in client assets
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
