RIA firms have substantially increased their assets under management within the past year as of this past quarter. Their growth has jump by the end of the 2nd quarter and the top firms have almost doubled their accounts. Advisors are realizing that breaking away from wirehouses to RIA firms is a lucrative way to go.
However the majority of top firms who have repeatedly been on the list have barely increased their accounts. Why is this happening? Many advisors are excited by the growth of assets, but it’s not from new business. This will ultimately hurt them when the markets turn for the worse again as we all know it will sooner or later.
So are these firms just riding the market out as long as they can and hope there isn’t a downturn? They should be focused on more ways to recruit more business and recruit more advisors who have access to large books of business. The bottom line should not have to depend on the market alone, but the amount of the accounts and high net worth clients you have as well.