Client Assets Rebound on Strong Referral Strategies
Assets under management for RIAs rebounded sharply last year, and not just because of the markets’ blistering performance.

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Registered investment advisors are back in the black in client assets.
Assets under management for RIAs rebounded sharply last year after a dismal 2022, and it wasn’t just because of the markets’ blistering performance, according to Charles Schwab’s latest RIA Benchmarking Study, which surveyed more than 1,300 firms representing $2 trillion in assets. It’s a welcome reset for an RIA industry that has enjoyed massive inflows of client cash over the past decade.
New Clients, New Money
AUM for the median RIA rose nearly 18% in 2023 — a much needed comeback from the 7.1% drop in 2022. Granted, a lot of that was fueled by a booming economy that saw the Dow jump 13% last year, the S&P 500 more than 24%, and the Nasdaq a whopping 43%.
However, RIAs also experienced significant organic growth, which excludes market performance, and translates into new money from new and existing clients. Assets from new clients reached their highest point on record, and assets from existing clients reached their second-highest point over the last five years, the report found:
- Top performing firms — those that rank in the top 20% of Charles Schwab’s index for successful RIAs — added a median of just over $43 million in new assets from 42 new clients in 2023, while the rest gained a median of about $18 million from 23 new clients.
- Client and business referrals, when an existing customer recommends an RIA to a prospective client, were the leading strategy in organic growth, accounting for 67% of new clients and new assets.
Not Going Anywhere: Like in much of life, being a good listener is a good idea. The study found that firms that collected feedback during client interviews gained 26% more assets from existing clients in 2023. And that type of strategy pays off in the long run, as investors’ attitudes to their RIAs haven’t changed much in the last 10 years. Over the past decade, RIA client retention has remained at 97%. Advisors can rest easy at night, knowing investors aren’t looking to put their money elsewhere anytime soon.