Amid the significant market decline in 2022, registered investment advisors (RIAs) dedicated substantial efforts throughout the year to retaining clients and addressing their concerns, as reported by InvestmentNews. Faced with the challenges posed by market volatility, financial advisors focused on client retention and sought to enhance their services. 

Anand Sekhar, Vice President of Practice Management and Consulting at Fidelity Institutional, the RIA custody arm of Fidelity Investments, highlighted the reactive nature of engagements driven by market fluctuations. The report indicates that RIAs with less than $1 billion in assets under management (AUM) experienced a decrease in organic growth rates, posting 3.2% last year compared to 8.2% in 2021. Similarly, larger RIAs with $1 billion or more reported a decline in organic growth, registering 3.6% last year compared to 8.4% in the previous year.

Rather than delving into high-value topics like holistic financial planning, family engagement, and generational wealth transfer, advisors prioritized protecting their core client base. According to Sekhar, their efforts were primarily focused on helping clients comprehend the market's state and navigate the challenges brought about by the turbulent financial landscape.

Leaders are advised to closely examine household data and reconsider offerings and pricing through a segmentation strategy to enhance profitability. Additionally, Sekhar underscores the importance of outsourcing, emphasizing that advisors now encompass more than just stock-picking responsibilities.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.