AssetMark continues growth in May

AssetMark Financial Holdings has continued its run of rapid growth from 2022 into the summer.

The turnkey asset management and technology provider ended the month of May with $96.4 billion in assets on its platform, up 10.9% year-over-year. The company ended 2022 with $91.5 billion in total platform assets, a decrease of 2.2% year-over-year, primarily as a result of market losses.

Net flows were $637 million in May, up 5.3% year-over-year, while the number of households increased 12.5% to 246,654. May market the fourth month in a row of inflows surpassing $400 million.

The company also reported that client cash was down 18.1% year-over-year, to $2.95 billion, which Scott Smith, director of advice relationships at Cerulli Associates, said is another positive for AssetMark.

“[The] reduction in client cash reinforces the idea of increasing clients’ confidence in the markets despite lingering concerns,” Smith said in an email.

Much of this growth may have come from AssetMark’s acquisition of Adhesion Wealth, a competing TAMP. AssetMark closed that deal in December.

AssetMark CEO Natalie Wolfsen declined to state how much of the TAMP’s growth was organic versus from the Adhesion acquisition, instead saying the company has “healthy growth from each client segment it serves.”

“A lot of the activity driving growth is the result of our efforts to serve advisors and their clients during the challenges of 2022,” Wolfsen said in an email. “Existing advisors are doing more business with us, new advisors are increasingly open to outsourcing, and investors are looking for advisors who can provide them with more.”

AssetMark will report its second-quarter earnings in August.