Advisors saw revenue and assets under management grow in 2014, according to PriceMetrix, a practice management analytics software firm based in Toronto. And yet the industry faces challenges presented by the aging of both advisors and clients, says the firm.

These are the findings of PriceMetrix’s fifth annual “State of Retail Wealth Management” industry report, released this spring. The report covers both American and Canadian advisors, with the vast majority being the former.

Assets under management for the average advisor reached $97 million in 2014, up from $90 million the year before, PriceMetrix reports. Revenue for the average advisor grew by 13% to $655,000 last year, and revenue on assets improved to 0.69%, the first increase since the beginning of the financial crisis in 2008.

Advisors also continued to make progress reducing the number of clients they serve.

The average number of clients in an advisor’s book fell to 150 in 2014, down from 156 in 2013. At the same time, average client assets increased to $628,000 from $562,000. Overall, since 2011 advisors have reduced the number of clients they serve by 10%, according to the report.

The industry also continued its transition to fee-based revenue. The percentage of fee-based assets in the average advisor’s book increased from 31% to 35% in 2014, while the percentage of fee revenue rose from 47% to 53%.

By the end of last year, 25% of clients were doing at least some fee-based business with their advisor, as traditional transaction-based clients added fee accounts to their portfolios, PriceMetrix says.

“Financial advisors and their firms should be very pleased with their performance in 2014,” says Doug Trott, president and CEO of PriceMetrix.

However, the average age for both advisors and their clients is increasing rapidly, the firm says. Advisors continue to focus on older clients who have more assets. The proportion of new clients under the age of 45 remains at 23%, a level that has not changed since 2011, the report shows.

“Advisors and their firms simply cannot afford to overlook younger clients,” says Trott. “They need to devote a significant portion of their business development efforts to younger clients, or their future growth will slow down.”