The US is the largest wealth market in the world, and home to a diverse and sizable HNW segment. As the population continues to age, building ties with younger generations will ensure successful transfers of wealth to beneficiaries. Less than 25% of client investment portfolios are allocated into bond investments, and with less demand expected in the future more pressure is placed on better returns from alternative investments.
Almost half of US HNW individuals have gained wealth either as a family business owner or as a first-generation entrepreneur. Greater demand for personalized wealth management services and reaching international markets is expected.
Gaining access to sophisticated investment products is the number one reason US HNW clients opt to have their wealth professionally managed, while 23.1% believe their portfolio is too complex to manage themselves.
While more than twice as many HNW clients prefer discretionary mandates over advisory asset management, the latter will display the greatest increase in demand.
Equities are the main constituent of a US HNW investment portfolio. As expected, alternative investments are gaining importance and make up 26% of an average HNW portfolio.
Among planning services, financial planning shows the strongest demand. But wealth managers will do well to provide a complete suite of tax planning services.
Verdict Financials Wealth in the US: HNW Investors report analyzes the investing preferences and portfolio allocation of US HNW investors. The report is based on our proprietary Global Wealth Managers Survey.
Specifically the report:
Profiles the average US HNW investor in terms of their demographics and analyzes the expat opportunity in the US.
Analyzes which wealth management mandates are preferred among US HNW investors and how demand will develop looking forward.
Examines the allocation of US HNW investors portfolios into different asset classes and how the allocation is expected to develop in the future.
Analyzes product and service demand among US HNW investors.
Develop and enhance your client targeting strategies using our data on HNW profiles and sources of wealth.
Give your marketing strategies the edge required and capture new clients using insights from our data on HNW investors drivers for seeking investment advice vs self-directing.
Tailor your investment product portfolio to match the current and future demand for different asset classes among HNW individuals.
Develop your service proposition to match the service and product demand expressed by US HNW investors and react proactively to the forecasted change in demand.