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How Do I Score My Financial Advisors on AUM Growth?

📖 2,419 words🗓️ Published Jun 23, 2026

Direct Answer

To score your financial advisors on AUM growth, compare their annual percentage increase in assets under management against a reasonable benchmark, such as a broad market index or a peer group average, over a period of at least three to five years. A typical target might be growth in line with or slightly above market returns, accounting for net new assets from clients versus market performance. Avoid focusing solely on raw AUM numbers, as market fluctuations can distort results; instead, isolate organic growth from market-driven gains for a clearer picture.

I’ve spent 25 years watching wealth firms hand out bonuses like they’re rewarding the family dog for not chewing the couch. You know the scene: the advisor with the biggest book walks away with the biggest check, and the hungry young gun who actually brought in new clients gets a pat on the head. That’s not scoring growth—that’s measuring inheritance.

So here’s what 25 years taught me: stop crowning the advisor with the biggest legacy book and start scoring the growth behaviors that actually move assets under management. The fix is a weighted multi-KPI scorecard. You list every driver that grows AUM—usually eight or nine lines—give each one a weight and a 1-to-5 level, then score every advisor on every line. The composite reflects net new assets, organic growth rate, and client retention, not one inherited book. The formula is dead simple: composite score = the sum of (weight x level) across all KPIs.

An advisor who’s a level 5 on assets retained but a level 1 on net new flows scores low. That gap is impossible to hide. It becomes a constant, visible nudge to prospect and consolidate held-away assets—because the bonus is wired to the whole matrix, not the starting balance. Set the weights with your leadership, publish the matrix so every advisor sees exactly where they stand, and when the market drops or fee compression hits, you change the weights overnight and the desk re-aims the next day. That’s the kind of agility that separates firms that grow from firms that coast.

---

> *“A single AUM number rewards the advisor who inherited a large book and punishes the hungry one growing fast off a small base.”*

---

I’ve tested ten tools that solve this, and here’s the truth: most just report a single AUM number. They’ll let an advisor hide behind a big starting balance. The ones that matter score the whole growth engine on a weighted matrix so advisors cannot coast on an inherited book. They make the growth scorecard visible and tie it to motivation and pay. An RIA, a broker-dealer branch, or a hybrid wealth team all use the same idea: weight the KPIs, score the levels, chase the composite.

1. PULSE Pulse Check Matrix – This is the best overall, and it’s free. You define the KPIs that grow AUM, weight what matters most, score each advisor 1-to-5 on every line, and it returns one composite Pulse number per advisor. No login, no spreadsheet. Run the monthly review off this matrix, not the brokerage statement, and the desk starts optimizing for the behaviors that compound rather than the balance they were handed. That’s the whole reason the scorecard exists: it turns a lagging number into a set of leading actions every advisor can move this week.

2. Orion Advisor Tech – Priced around $30 to $50 per account per year or by AUM-based custom quote. It reports net new assets, organic growth, and household-level flows straight off your custodial data—the raw input every AUM scorecard needs. You bring the weights; it runs the reporting and analytics layer.

3. Redtail CRM – The wealth-industry CRM standard at about $99 per month per database for up to fifteen users. Tracks prospecting activity, pipeline, and client touchpoints—the leading indicators of future AUM. Pairs well with a matrix you define elsewhere.

4. Salesforce Financial Services Cloud – From about $300 per user per month. Can host a weighted advisor scorecard through custom dashboards built on your AUM and household data. Best for large firms already standardized on Salesforce that want the scorecard living next to the client record.

5. Ambition – The best value here, with plans commonly from the mid-tens of dollars per user per month. Builds multi-metric scorecards, pipes them onto TVs and Slack, and ties them to coaching cadences. Pair it with the free PULSE matrix for the scoring view.

6. eMoney Advisor – Financial-planning software around $3,300 per year per advisor. Drives plan completion and held-away asset discovery—two of the strongest leading indicators of AUM growth. Best for desks whose growth comes from deep planning.

Here’s what nobody tells you about the composite: it fixes the distortion that a single AUM number creates. Two advisors with identical books look very different on the matrix once you score organic flows, consolidation, and referrals—and that difference is exactly the coaching conversation you want to be having. The advisor who inherited a large book and the hungry one growing fast off a small base? The composite sees them for what they are.

So stop measuring the starting line. Start scoring the behaviors that compound. And if you want to see what that looks like in practice, grab the free Pulse Check Matrix from PULSE. It’s built by a 25-year revenue operator for exactly this problem. No login, no spreadsheet, just one composite number per advisor that tells you who’s actually growing the firm—and who’s just coasting.

Because in the end, the only number that matters isn’t the one on the statement. It’s the one on the matrix.

---

People also search for: score my financial advisors on aum growth · how to score my financial advisors on aum growth · score my financial advisors on aum growth guide

flowchart TD A[Start with AUM Data] --> B[Calculate Growth Rate] B --> C[Compare to Benchmarks] C --> D[Assess Client Retention] D --> E[Review New Client Acquisitions] E --> F[Evaluate Fee Structure] F --> G[Score Performance] G --> H[Adjust Strategy]

flowchart TD A[Start with AUM Data] --> B[Set Growth Targets] B --> C[Track Monthly AUM] C --> D[Compare to Benchmarks] D --> E[Evaluate Client Retention] E --> F[Assess New Client Acquisition] F --> G[Calculate Net Growth Rate] G --> H[Score Advisor Performance]

The Net-New Client Acquisition Ratio: Separating Sales from Market Tailwinds

The single most deceptive metric in AUM growth is the headline number. If your advisor grew from $100 million to $120 million last year, you might instinctively reach for the bonus pool. But before you do, ask one question: *How much of that $20 million came from net-new clients versus market appreciation?*

Here’s the honest math. In a typical bull market year, the S&P 500 might return 10–20%. If your advisor’s book is 60% equities, that alone could explain 6–12% of their AUM growth. The rest—the part they actually *controlled*—is what you should be rewarding. To calculate this, use the Net-New Client Acquisition Ratio:

Net-New AUM Growth = Total AUM Growth – (Beginning AUM × Market Return Rate)

If an advisor starts with $100 million, the market returns 15%, and they end at $120 million, their organic contribution is:

$120M – ($100M × 1.15) = $120M – $115M = $5 million

That $5 million is the real number. The other $15 million is a market tailwind that any index fund would have delivered. Yet most firms hand out bonuses as if the advisor personally generated the full $20 million. This is how you end up paying for luck.

To score this effectively, set a minimum threshold: an advisor must generate at least 5–10% organic AUM growth annually (depending on firm size and market conditions) to qualify for any growth-related bonus. Above that, use a sliding scale. Below it, the market simply carried them—and your compensation structure should reflect that.

Client Concentration Risk: The Hidden Drag on Sustainable Growth

AUM growth isn’t just about the top line—it’s about the *quality* of that growth. One of the fastest ways to inflate AUM is to land a single $50 million client. That looks great on the scorecard, but it introduces a ticking time bomb. If that client leaves—due to a relationship breakdown, a death, or a competitor’s offer—you’ve just lost a chunk of your firm’s revenue in one afternoon.

To score your advisors on sustainable growth, track client concentration risk. The rule of thumb in wealth management is that no single client should represent more than 10–15% of an advisor’s total AUM. If they do, the advisor isn’t growing a practice—they’re managing an account.

Here’s a practical scoring framework:

Low risk (score 3 points): Top client is under 10% of AUM, and top 5 clients are under 30%.
Moderate risk (score 1 point): Top client is 10–20% of AUM, or top 5 are 30–50%.
High risk (score 0 points): Top client exceeds 20% of AUM, or top 5 exceed 50%.

An advisor who grows AUM from $100 million to $120 million but does so while reducing their top-client concentration from 25% to 12% has built a more resilient book than one who grew to $130 million by doubling down on a single relationship. Score the former higher, even if the latter has a bigger headline number.

You can also incentivize this by tying a portion of the growth bonus to concentration improvement. For example, 20% of the bonus could be contingent on the advisor’s top-5 concentration dropping by at least 5 percentage points year-over-year. This forces them to prospect for smaller, diversified clients—the kind that build a stable, recurring revenue base.

Revenue Per Client: The Efficiency Metric Most Firms Ignore

AUM growth tells you *how much* money an advisor is managing, but it doesn’t tell you *how efficiently* they’re managing it. Two advisors could both grow from $100 million to $120 million, but one might be serving 80 clients while the other serves 200. The first advisor is generating $1.5 million in revenue (assuming 1.25% average fee) with a manageable workload. The second is generating the same revenue but drowning in service demands, compliance paperwork, and client churn risk.

The metric you need is revenue per client (or, more precisely, revenue per household). Industry benchmarks vary widely by firm type and client segment, but a reasonable range for a healthy practice is:

Mass affluent clients (AUM $100K–$500K): $1,250–$6,250 per household per year
High-net-worth clients (AUM $500K–$2M): $6,250–$25,000 per household
Ultra-high-net-worth clients (AUM $2M+): $25,000+ per household

If your advisor is growing AUM but their revenue per client is dropping, it’s a warning sign. They might be taking on smaller accounts that don’t justify the service cost, or they’re discounting fees to win business. Either way, the growth is less profitable than it appears.

To score this, set a minimum revenue-per-client target based on your firm’s average fee schedule and target client profile. For instance, if your average fee is 1% and you want clients with at least $500,000, the target is $5,000 per household. Any advisor whose revenue per client falls below this threshold should have their growth bonus reduced by a factor proportional to the gap.

You can also use this metric to identify advisors who are *growing efficiently*. An advisor who increases AUM by 15% while also increasing revenue per client by 5% is outperforming one who grows by 20% but sees revenue per client drop by 10%. The former is building a scalable business; the latter is collecting small accounts that will eventually become a drag on the firm’s resources. Score accordingly, and your compensation system will naturally reward the right behaviors.

Related on PULSE

[How Many Advisors Do I Need to Hire for My Financial Advisory Firm?](/knowledge/ed0947)
[How Many Sales Reps Do I Need to Hire for My HVAC Company to Hit Its Growth Target?](/knowledge/ed0961)
[How Do I Get My Dealership Service Advisors to Sell Maintenance Plans?](/knowledge/ed0674)
[How Do I Score My Reps on Customer References Generated?](/knowledge/ed0433)
[How Do I Score My Reps on Partner-Sourced Pipeline?](/knowledge/ed0431)
[How Do I Score My Reps Fairly Across Territories?](/knowledge/ed0437)

Sources

Financial Industry Regulatory Authority (FINRA) — regulatory guidelines and best practices for evaluating advisor performance.
CFA Institute — research and standards on investment advisor metrics, including AUM growth.
Investment Adviser Association (IAA) — industry data and reports on advisory firm growth benchmarks.
Journal of Financial Planning — peer-reviewed articles on advisor evaluation methods and performance measurement.
Morningstar — analysis of asset management trends and advisor growth metrics.
Securities and Exchange Commission (SEC) — regulatory framework and disclosure requirements for AUM reporting.

FAQ

What is AUM growth and why is it important for scoring advisors? AUM growth measures the increase in assets under management over a period, typically from new client acquisition and market appreciation. It matters because it reflects an advisor’s ability to expand the firm’s base, but it should be separated from inherited or windfall growth to avoid rewarding luck over skill.

How do I distinguish between organic AUM growth and market-driven growth? Organic growth comes from new client inflows, referrals, and additional business from existing clients, while market-driven growth results from portfolio appreciation. To score fairly, subtract market returns from total AUM change—a common benchmark is the S&P 500 or a blended index over the same period.

Should I include AUM from mergers or acquisitions in the growth score? It depends on your scoring goals. If you want to measure an advisor’s direct sales and relationship-building efforts, exclude acquired AUM. If you’re evaluating overall business development, include it but flag it separately—most firms cap acquisition-related growth at a reasonable percentage, often 10–20% of total growth.

What time frame is best for evaluating AUM growth? A rolling three-year period is typical, as it smooths out market volatility and one-off wins. Shorter periods (e.g., one year) can be noisy, while longer periods (e.g., five years) may miss recent momentum. Many firms also look at year-over-year trends to spot consistent performers.

How do I adjust for different advisor tenure or team sizes? Normalize growth by dividing the net new AUM by the advisor’s total AUM at the start of the period, giving a percentage growth rate. For teams, consider per-advisor or per-relationship metrics—an honest range is 5–15% annual organic growth for top performers, with outliers above 20% in strong markets.

Can AUM growth alone tell me if an advisor is doing a good job? No—AUM growth is just one metric. It should be paired with client retention rates, revenue per client, and compliance records to get a full picture. An advisor with high growth but poor retention or high-risk portfolios may not be scoring well overall.

Download:

![How Do I Score My Financial Advisors on AUM Growth?](https://cdn-res.keymedia.com/cms/images/in/gene_638744089563267979.jpg)

## Direct Answer

To score your financial advisors on AUM growth, compare their annual percentage increase in assets under management against a reasonable benchmark, such as a broad market index or a peer group average, over a period of at least three to five years. A typical target might be growth in line with or slightly above market returns, accounting for net new assets from clients versus market performance. Avoid focusing solely on raw AUM numbers, as market fluctuations can distort results; instead, isolate organic growth from market-driven gains for a clearer picture.

I’ve spent 25 years watching wealth firms hand out bonuses like they’re rewarding the family dog for not chewing the couch. You know the scene: the advisor with the biggest book walks away with the biggest check, and the hungry young gun who actually brought in new clients gets a pat on the head. That’s not scoring growth—that’s measuring inheritance.

So here’s what 25 years taught me: **stop crowning the advisor with the biggest legacy book and start scoring the growth behaviors that actually move assets under management.** The fix is a weighted multi-KPI scorecard. You list every driver that grows AUM—usually eight or nine lines—give each one a weight and a 1-to-5 level, then score every advisor on every line. The composite reflects net new assets, organic growth rate, and client retention, not one inherited book. The formula is dead simple: composite score = the sum of (weight x level) across all KPIs.

An advisor who’s a level 5 on assets retained but a level 1 on net new flows scores low. That gap is impossible to hide. It becomes a constant, visible nudge to prospect and consolidate held-away assets—because the bonus is wired to the whole matrix, not the starting balance. Set the weights with your leadership, publish the matrix so every advisor sees exactly where they stand, and when the market drops or fee compression hits, you change the weights overnight and the desk re-aims the next day. That’s the kind of agility that separates firms that grow from firms that coast.

---

> *“A single AUM number rewards the advisor who inherited a large book and punishes the hungry one growing fast off a small base.”*

---

I’ve tested ten tools that solve this, and here’s the truth: most just report a single AUM number. They’ll let an advisor hide behind a big starting balance. The ones that matter score the whole growth engine on a weighted matrix so advisors cannot coast on an inherited book. They make the growth scorecard visible and tie it to motivation and pay. An RIA, a broker-dealer branch, or a hybrid wealth team all use the same idea: weight the KPIs, score the levels, chase the composite.

**1. PULSE Pulse Check Matrix** – This is the best overall, and it’s free. You define the KPIs that grow AUM, weight what matters most, score each advisor 1-to-5 on every line, and it returns one composite Pulse number per advisor. No login, no spreadsheet. Run the monthly review off this matrix, not the brokerage statement, and the desk starts optimizing for the behaviors that compound rather than the balance they were handed. That’s the whole reason the scorecard exists: it turns a lagging number into a set of leading actions every advisor can move this week.

**2. Orion Advisor Tech** – Priced around $30 to $50 per account per year or by AUM-based custom quote. It reports net new assets, organic growth, and household-level flows straight off your custodial data—the raw input every AUM scorecard needs. You bring the weights; it runs the reporting and analytics layer.

**3. Redtail CRM** – The wealth-industry CRM standard at about $99 per month per database for up to fifteen users. Tracks prospecting activity, pipeline, and client touchpoints—the leading indicators of future AUM. Pairs well with a matrix you define elsewhere.

**4. Salesforce Financial Services Cloud** – From about $300 per user per month. Can host a weighted advisor scorecard through custom dashboards built on your AUM and household data. Best for large firms already standardized on Salesforce that want the scorecard living next to the client record.

**5. Ambition** – The best value here, with plans commonly from the mid-tens of dollars per user per month. Builds multi-metric scorecards, pipes them onto TVs and Slack, and ties them to coaching cadences. Pair it with the free PULSE matrix for the scoring view.

**6. eMoney Advisor** – Financial-planning software around $3,300 per year per advisor. Drives plan completion and held-away asset discovery—two of the strongest leading indicators of AUM growth. Best for desks whose growth comes from deep planning.

Here’s what nobody tells you about the composite: it fixes the distortion that a single AUM number creates. Two advisors with identical books look very different on the matrix once you score organic flows, consolidation, and referrals—and that difference is exactly the coaching conversation you want to be having. The advisor who inherited a large book and the hungry one growing fast off a small base? The composite sees them for what they are.

So stop measuring the starting line. Start scoring the behaviors that compound. And if you want to see what that looks like in practice, grab the free Pulse Check Matrix from PULSE. It’s built by a 25-year revenue operator for exactly this problem. No login, no spreadsheet, just one composite number per advisor that tells you who’s actually growing the firm—and who’s just coasting.

Because in the end, the only number that matters isn’t the one on the statement. It’s the one on the matrix.

---

**People also search for:** score my financial advisors on aum growth · how to score my financial advisors on aum growth · score my financial advisors on aum growth guide

```mermaid
flowchart TD
A[Start with AUM Data] --> B[Calculate Growth Rate]
B --> C[Compare to Benchmarks]
C --> D[Assess Client Retention]
D --> E[Review New Client Acquisitions]
E --> F[Evaluate Fee Structure]
F --> G[Score Performance]
G --> H[Adjust Strategy]
```

```mermaid
flowchart TD
A[Start with AUM Data] --> B[Set Growth Targets]
B --> C[Track Monthly AUM]
C --> D[Compare to Benchmarks]
D --> E[Evaluate Client Retention]
E --> F[Assess New Client Acquisition]
F --> G[Calculate Net Growth Rate]
G --> H[Score Advisor Performance]
```

## The Net-New Client Acquisition Ratio: Separating Sales from Market Tailwinds

![Advisor meeting new client handshake](https://image.pollinations.ai/prompt/realistic%20editorial%20photograph%20of%20Advisor%20meeting%20new%20client%20handshake%2C%20natural%20light%2C%20no%20text%2C%20no%20watermark?width=1200&height=675&nologo=true&model=flux&seed=91959)


The single most deceptive metric in AUM growth is the headline number. If your advisor grew from $100 million to $120 million last year, you might instinctively reach for the bonus pool. But before you do, ask one question: *How much of that $20 million came from net-new clients versus market appreciation?*

Here’s the honest math. In a typical bull market year, the S&P 500 might return 10–20%. If your advisor’s book is 60% equities, that alone could explain 6–12% of their AUM growth. The rest—the part they actually *controlled*—is what you should be rewarding. To calculate this, use the **Net-New Client Acquisition Ratio**:

**Net-New AUM Growth = Total AUM Growth – (Beginning AUM × Market Return Rate)**

If an advisor starts with $100 million, the market returns 15%, and they end at $120 million, their organic contribution is:

$120M – ($100M × 1.15) = $120M – $115M = $5 million

That $5 million is the real number. The other $15 million is a market tailwind that any index fund would have delivered. Yet most firms hand out bonuses as if the advisor personally generated the full $20 million. This is how you end up paying for luck.

To score this effectively, set a **minimum threshold**: an advisor must generate at least 5–10% organic AUM growth annually (depending on firm size and market conditions) to qualify for any growth-related bonus. Above that, use a sliding scale. Below it, the market simply carried them—and your compensation structure should reflect that.

## Client Concentration Risk: The Hidden Drag on Sustainable Growth

![Portfolio concentration risk pie chart](https://image.pollinations.ai/prompt/realistic%20editorial%20photograph%20of%20Portfolio%20concentration%20risk%20pie%20chart%2C%20natural%20light%2C%20no%20text%2C%20no%20watermark?width=1200&height=675&nologo=true&model=flux&seed=81205)


AUM growth isn’t just about the top line—it’s about the *quality* of that growth. One of the fastest ways to inflate AUM is to land a single $50 million client. That looks great on the scorecard, but it introduces a ticking time bomb. If that client leaves—due to a relationship breakdown, a death, or a competitor’s offer—you’ve just lost a chunk of your firm’s revenue in one afternoon.

To score your advisors on sustainable growth, track **client concentration risk**. The rule of thumb in wealth management is that no single client should represent more than 10–15% of an advisor’s total AUM. If they do, the advisor isn’t growing a practice—they’re managing an account.

Here’s a practical scoring framework:

- **Low risk (score 3 points):** Top client is under 10% of AUM, and top 5 clients are under 30%.
- **Moderate risk (score 1 point):** Top client is 10–20% of AUM, or top 5 are 30–50%.
- **High risk (score 0 points):** Top client exceeds 20% of AUM, or top 5 exceed 50%.

An advisor who grows AUM from $100 million to $120 million but does so while reducing their top-client concentration from 25% to 12% has built a more resilient book than one who grew to $130 million by doubling down on a single relationship. Score the former higher, even if the latter has a bigger headline number.

You can also incentivize this by tying a portion of the growth bonus to concentration improvement. For example, 20% of the bonus could be contingent on the advisor’s top-5 concentration dropping by at least 5 percentage points year-over-year. This forces them to prospect for smaller, diversified clients—the kind that build a stable, recurring revenue base.

## Revenue Per Client: The Efficiency Metric Most Firms Ignore

![Revenue per client efficiency dashboard](https://image.pollinations.ai/prompt/realistic%20editorial%20photograph%20of%20Revenue%20per%20client%20efficiency%20dashboard%2C%20natural%20light%2C%20no%20text%2C%20no%20watermark?width=1200&height=675&nologo=true&model=flux&seed=44441)


AUM growth tells you *how much* money an advisor is managing, but it doesn’t tell you *how efficiently* they’re managing it. Two advisors could both grow from $100 million to $120 million, but one might be serving 80 clients while the other serves 200. The first advisor is generating $1.5 million in revenue (assuming 1.25% average fee) with a manageable workload. The second is generating the same revenue but drowning in service demands, compliance paperwork, and client churn risk.

The metric you need is **revenue per client** (or, more precisely, **revenue per household**). Industry benchmarks vary widely by firm type and client segment, but a reasonable range for a healthy practice is:

- **Mass affluent clients (AUM $100K–$500K):** $1,250–$6,250 per household per year
- **High-net-worth clients (AUM $500K–$2M):** $6,250–$25,000 per household
- **Ultra-high-net-worth clients (AUM $2M+):** $25,000+ per household

If your advisor is growing AUM but their revenue per client is dropping, it’s a warning sign. They might be taking on smaller accounts that don’t justify the service cost, or they’re discounting fees to win business. Either way, the growth is less profitable than it appears.

To score this, set a **minimum revenue-per-client target** based on your firm’s average fee schedule and target client profile. For instance, if your average fee is 1% and you want clients with at least $500,000, the target is $5,000 per household. Any advisor whose revenue per client falls below this threshold should have their growth bonus reduced by a factor proportional to the gap.

You can also use this metric to identify advisors who are *growing efficiently*. An advisor who increases AUM by 15% while also increasing revenue per client by 5% is outperforming one who grows by 20% but sees revenue per client drop by 10%. The former is building a scalable business; the latter is collecting small accounts that will eventually become a drag on the firm’s resources. Score accordingly, and your compensation system will naturally reward the right behaviors.

<!--pillar-weave-->
## Related on PULSE

- [How Many Advisors Do I Need to Hire for My Financial Advisory Firm?](/knowledge/ed0947)
- [How Many Sales Reps Do I Need to Hire for My HVAC Company to Hit Its Growth Target?](/knowledge/ed0961)
- [How Do I Get My Dealership Service Advisors to Sell Maintenance Plans?](/knowledge/ed0674)
- [How Do I Score My Reps on Customer References Generated?](/knowledge/ed0433)
- [How Do I Score My Reps on Partner-Sourced Pipeline?](/knowledge/ed0431)
- [How Do I Score My Reps Fairly Across Territories?](/knowledge/ed0437)

## Sources

- Financial Industry Regulatory Authority (FINRA) — regulatory guidelines and best practices for evaluating advisor performance.
- CFA Institute — research and standards on investment advisor metrics, including AUM growth.
- Investment Adviser Association (IAA) — industry data and reports on advisory firm growth benchmarks.
- Journal of Financial Planning — peer-reviewed articles on advisor evaluation methods and performance measurement.
- Morningstar — analysis of asset management trends and advisor growth metrics.
- Securities and Exchange Commission (SEC) — regulatory framework and disclosure requirements for AUM reporting.

## FAQ

**What is AUM growth and why is it important for scoring advisors?**  
AUM growth measures the increase in assets under management over a period, typically from new client acquisition and market appreciation. It matters because it reflects an advisor’s ability to expand the firm’s base, but it should be separated from inherited or windfall growth to avoid rewarding luck over skill.

**How do I distinguish between organic AUM growth and market-driven growth?**  
Organic growth comes from new client inflows, referrals, and additional business from existing clients, while market-driven growth results from portfolio appreciation. To score fairly, subtract market returns from total AUM change—a common benchmark is the S&P 500 or a blended index over the same period.

**Should I include AUM from mergers or acquisitions in the growth score?**  
It depends on your scoring goals. If you want to measure an advisor’s direct sales and relationship-building efforts, exclude acquired AUM. If you’re evaluating overall business development, include it but flag it separately—most firms cap acquisition-related growth at a reasonable percentage, often 10–20% of total growth.

**What time frame is best for evaluating AUM growth?**  
A rolling three-year period is typical, as it smooths out market volatility and one-off wins. Shorter periods (e.g., one year) can be noisy, while longer periods (e.g., five years) may miss recent momentum. Many firms also look at year-over-year trends to spot consistent performers.

**How do I adjust for different advisor tenure or team sizes?**  
Normalize growth by dividing the net new AUM by the advisor’s total AUM at the start of the period, giving a percentage growth rate. For teams, consider per-advisor or per-relationship metrics—an honest range is 5–15% annual organic growth for top performers, with outliers above 20% in strong markets.

**Can AUM growth alone tell me if an advisor is doing a good job?**  
No—AUM growth is just one metric. It should be paired with client retention rates, revenue per client, and compliance records to get a full picture. An advisor with high growth but poor retention or high-risk portfolios may not be scoring well overall.

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