Congratulations to all RIA firms for your hard work and success over the last two years, it has led to some great results.

Assets under management were up nearly 20% from the prior year and revenue increased 23% for all firms at the median.

Top-performing firms continue to lead the way.

Top-performing firms got even stronger growth at the median, with nearly 30% increase in both AUM and revenue.

The value proposition RIA firms offer is exactly what many investors want and need during times of uncertainty and volatility.

Client retention remains high because clients see and understand your commitment to working in their best interests.

This client-first commitment coupled with an entrepreneurial mindset has helped drive three key trends.

First, talent is now a top strategic priority.

Second, more firms are turning to digital processes to improve efficiency.

And, third, written strategies are helping drive organic growth.

Let's go ahead and unpack these just a little bit.

This year for the first time ever, recruiting new staff is a top strategic priority for firms, jumping ahead of acquiring new clients through referrals, which typically takes that number one spot.

80% of all firms plan to hire in 2022.

And based on current growth, the median firm in the study will need to hire six new roles in the next five years to keep up with that growth.

Top-performing firms also take a very proactive approach to hiring and retaining talent.

Our study found that they're more likely to have documented talent strategies and an employee value proposition to help them compete in a tight labor market.

Another key trend is that the vast majority of firms we surveyed use digital workflows and continue to adopt digital capabilities.

This leap in digital adoption since the pandemic began has led to major productivity and efficiency gains for all firms.

Top-performing firms are more often high adopters of digital tools and standardized workflows.

This led to tangible efficiency gains with these firms spending nearly 20% less per client on operations and administration.

Organic growth was also a major driver of overall growth in 2021.

But what powered these gains?

Firms with a written marketing plan, ideal client persona, and client value proposition gained 42% more new clients than firms that didn't have all three in place.

Documenting referral plans also helped to make an impact.

Firms with written referral plans generated more new clients from business partners and from client referrals.

A huge thank you to each and every firm who participated in this study.

And even if you didn't participate, please take a look at our website because we will share a wealth of information about where our industry stands and how we're evolving.

Thank you so much.

Be safe and be well.

LISA SALVI:  Hi, I'm Lisa Salvi. Let's take a look at some of the findings from our most recent RIA Benchmarking Study. 

Last year, the challenging environment became a catalyst for remarkable growth. And the great news is that growth was fueled by advisors adding new clients and expanding relationships with existing clients. Sixty-eight percent of firms tell us that they met or exceeded their new client goals in 2020. And most of those firms also saw a very strong uptick in net assets from existing clients.

Some of the factors that help firms succeed include quickly adapting the tools and tactics used to win new business and stay connected with clients, taking advantage of technology to enhance productivity, and continuing to attract and develop talent firms need to support current and future growth.

The environment of uncertainty meant investors needed advisor guidance more than ever, and RIAs, as always, delivered. Firms adapted to how they support clients and attracting and convert prospects. Eighty percent of firms tell us that they closed a new client relationship completely virtually in the past year, something I don't think we would have contemplated in a normal business environment. 

Digital tools, of course, played an essential role in staying connected and getting work done. The firm's website became the new front door for connecting with prospects. Firms tried new things, like virtual events and podcasts, and many expanded their use of social media.

Virtual meetings became critically important for delivering the client experience, really, the cornerstone of connecting with both clients and prospects. 

What advisors have learned will take them into a hybrid future. Firms report that they think they're going to do 30% of their new business virtually even after COVID restrictions are lifted. 

As everyone became more accustomed to working together virtually, the benefits became clear. Flexibility and convenience helped to strengthen relationships and boosted efficiency.

Firms saw several productivity gains year-over-year, such as decreasing the amount of time they spend per client on operations by 6% in just a one-year period. 

Firms that really adapted to this digital-first mentality can see a compounding effect of this in the future, as they're able to scale, serve more clients, and partially offset some of the margin compression that has creeped in. 

Though technology continues to play an increasingly important role, people are still a firm's most important asset. 

Across the study firms continue to hire in 2020 and most firms, eight out of 10, say that they're hiring in 2021.

Across the study there's many strategic priorities to choose from. And the number two strategic priority was hiring and recruiting talent. That's the highest we've ever seen it, and a very clear indicator that talent is definitely a differentiator of the future. 

Competition for that talent is going to remain fierce, and it's a really good time to take a look at your employee value proposition, and make sure it's helping you recruit, retain, and develop the right talent for your firm. Some of the things a good employee value proposition include are your approach to the work environment, and that would include things like whether or not there's flexible remote work options at your firm, compelling compensation, base salary, incentive pay, profit distributions, even non-cash compensation, even whether you have career paths, and professional learning opportunities and development for your team members. 

And more and more your firm's culture and commitment to inclusivity are also very important to job seekers. 

The quick pivot to a virtual model was definitely a challenge, but most firms believe it spurred innovation and will make them stronger. Many leaders are looking ahead to build a strong culture and operating model that incorporates the best of both in-person and virtual.

This hybrid approach could help firms become more scalable and nimble as client expectations continue to evolve, paving the way for future success. 

A huge thank you to all the firms that participated in the 2021 study. And whether you participated or not, there's a lot of findings you can dive deeper into to help you get to the next level for your firm.