Advisory firms reporting the strongest growth over the past three years were more likely to invest in hiring, build referral networks and regularly monitor business performance, according to new research from wealth management platform AssetMark.
The firm's 2026 Growth Assessment analyzed responses from 240 advisors and examined how various business practices correlated with reported asset growth. The findings come as many firms seek ways to sustain growth amid a more uncertain market environment.
While nearly 45% of advisors reported assets under management growth of more than 20% during the past three years, 29% reported growth of less than 10%, according to the study. AssetMark also found that nearly 29% of advisors underperformed the returns of a passive 60/40 portfolio over the same period, suggesting some firms may have relied more heavily on market appreciation than on net new business growth.
The study identified hiring and team development as the strongest differentiator among firms. Advisors who reported actively hiring or restructuring their teams were significantly more likely to fall into the highest growth category than those with no hiring plans, with 65% reaching the top tier compared with 36% of firms that were not expanding staff.
Referral development also emerged as a key factor. According to the survey 93% of advisors reported having no formal process for generating referrals. However, firms with 11 or more active referral sources were more likely to report stronger growth than firms with fewer than three referral relationships (58% vs. 38%).
The research also highlighted gaps in how firms track and evaluate growth initiatives. More than half of advisors said they rarely or never conduct formal growth reviews, while nearly 90% reported they do not formally review marketing outcomes. Those practices were less common among firms reporting higher growth rates.
The findings suggest that having a growth strategy alone may not be enough. AssetMark’s analysis found that advisors with documented growth plans generally reported stronger results, but firms consistently executed on hiring, referral development and accountability measures tended to outperform peers.
“The last decade created significant growth opportunities across the advisory industry, but our research suggests that sustainable organic growth increasingly depends on operational discipline and consistent execution,” said Michael Kim, chief executive officer of AssetMark.
As firms look beyond market-driven gains, the study points to a growing divide between advisors relying on favorable conditions and building systems designed to support long-term organic growth.
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