The report found that assets-under-management for the average advisor reached $97 million in 2014, average advisor revenue surged 13 per cent to $655,000 and revenue on assets, or RoA, improved to 0.69 per cent, the first increase since the beginning of the financial crisis in 2008.
Advisors also continued to reduce the average number of clients they serve as the number fell from 156 in 2013 to 150 in 2014. Overall, advisors have reduced the number of clients they serve by 10 per cent.
At the same time, average client assets increased to $628,000 from $562,000, according to the report.
Bottom-performing advisors also struggled in 2014, actually seeing revenues decline, leaving them and their firms with difficult decisions moving forward.
“Advisors and their firms simply cannot afford to overlook younger clients,” he said, adding that while some might see a soft short-term hit, the long-term benefits far outweigh the risks. “They need to devote a significant portion of their business development efforts to younger clients or their future growth will slow down.”