Advisor AUM Reaches Record
Mar 12, 2013
By Charles Paikert
While increasing AUM and revenue per advisor increased, average revenue on total assets decreased. The “…average revenue on assets fell 3% — to an average 0.69%, down from 0.72% the prior year — as revenue growth did not keep pace with asset growth. The average revenue on fee-based accounts “…declined to 1.06% last year from 1.14% in 2011.” This is partly due to new large accounts that are typically charged lower rates, but it could indicate new accounts are being charged lower fees.
The average number of households served by an advisor went down slightly, from 165 in 2011 to 159 in 2012, while the average household assets increased 13% to $491,000. PriceMetrix suggests that advisors should focus on building strong relationships with large assets households and work to increase the number of accounts per household.