There were more SEC-registered investment advisers than ever before in 2023 — 15,396, according to data from the Investment Adviser Industry Snapshot.
The survey by the Investment Adviser Association and COMPLY also showed continued growth in the number of asset management clients — 56.7 million in 2023, a 4.4% increase over the previous year. The number of all clients increased by 3.5%.
Assets under management rebounded 12.6% in 2023, matching the record high of $128.4 trillion set in 2021.
Non-clerical employment surpassed the 1 million mark, growing 3.6% for a record of 1,006,471 employees.
“The past year again illustrates the important role that the investment adviser industry plays, both by providing crucial advice to investors and as an essential contributor to the markets and the economy,” said IAA President and CEO Karen Barr. “Individual investors increasingly recognize the value of fiduciary advice as they seek to save and invest for retirement, home ownership, education, and other goals.”
The Snapshot also reported that 16,296 advisers were registered with state authorities, managing assets for over 830,000 individuals residing almost entirely in the United States. Individual clients accounted for more than 97.0% of the advisers’ total clients, and nearly 90.0% of the advisers’ $417.1 billion in assets under management.
Other statistics included:
92.7% of advisers employed staffs of 100 or less.
69.3% of advisers managed less than $1 billion in assets; 80% managed less than $5 billion.
Advisers focused on individuals as clients were mostly small, with an average of 9 employees, 2 offices, and $365 million in assets under management.
Advisers with less than $1 billion in assets accounted for almost all the new SEC registrations, with new registrants accounting for 10.0% of firms in this size range.
An average state-registered adviser has 2 non-clerical employees, 52 clients, and $26 million in assets under management.
