Wealth management platform AssetMark released its 2026 Growth Assessment, a study of 240 advisory firms that identifies operational discipline as a key differentiator between fast-growing firms and their slower-growing peers. The research comes as advisors seek sustainable growth strategies amid market uncertainty.
According to the study, nearly 45% of advisors reported asset under management growth exceeding 20% over the past three years, while 29% saw growth below 10%. Notably, 29% of advisors underperformed a passive 60/40 portfolio during the same period, suggesting many firms relied on market appreciation rather than net new business generation.
Hiring and team development emerged as the strongest growth differentiator. Among firms actively hiring or restructuring teams, 65% fell into the highest growth category, compared with just 36% of firms with no hiring plans. This aligns with broader industry trends, such as RBC Capital Markets Accelerates U.S. Hiring Push, highlighting the importance of talent acquisition.
Referral networks also played a critical role. The survey found that 93% of advisors lack a formal referral process. However, firms with 11 or more active referral sources were 58% likely to report strong growth, versus 38% for those with fewer than three. This contrasts with findings from a separate study, Half of Ultra-HNW Investors Bypass Referrals, suggesting referral effectiveness may vary by client segment.
Gaps in performance tracking were evident: more than half of advisors rarely or never conduct formal growth reviews, and nearly 90% do not formally review marketing outcomes. These practices were less common among high-growth firms, which consistently monitored business performance.
AssetMark CEO Michael Kim noted, “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.”
The findings underscore that having a growth strategy alone is insufficient. Firms that executed on hiring, referral development, and accountability measures outperformed those with only documented plans. As advisors navigate a complex environment, operational rigor may be the key to separating leaders from laggards.
