Core Insights - LPL Financial has released the first annual Advisor Growth Study (AGS), which analyzes six years of data from over 14,000 financial advisors to identify behaviors that drive strategic growth in the wealth management industry [1][2][6] Industry Trends - The AGS aims to provide insights into industry trends that facilitate growth for financial advisors and institutions, utilizing supervised machine learning and explainable AI to enhance data analysis [2][6] - The study reveals that advisors and institutions with the highest Advisor Growth Index (AGI) scores grow assets under management (AUM) three times faster than median performers [4] Advisor Benchmarking - The AGI serves as a diagnostic tool for advisors and institutions, allowing them to benchmark their performance in client acquisition, development, and retention against top performers [3][4] - AGI scores are dynamic, enabling advisors to track progress over time and adjust strategies accordingly [5] Key Behaviors of Successful Advisors - The AGS identifies four key behaviors that distinguish top-growing advisors: - **Establish Growth Foundation**: Successful advisors prioritize long-term client relationships and operational efficiency, maintaining a balanced client mix with a median client aged 60 or younger [8][13] - **Segment Clients**: Top advisors segment clients based on unique needs, with 30-60% of growth coming from clients in the top 10% of AUM [8][13] - **Deeply Serve Clients**: High-performing advisors focus on tailored support for complex needs, with those holding over 60% of client assets in advisory seeing consistent gains [13] - **Drive New Client Acquisition**: Successful advisors target high-potential prospects, achieving over 10% new client acquisition annually [13] Conclusion - The AGS and AGI are part of LPL's Advisor Growth System, a comprehensive framework designed to help advisors and institutions benchmark performance and identify growth opportunities [9]