United States of America (USA) Wealth Management – High Net Worth (HNW) Investors 2022
In the US, men dominate the HNW space, accounting of a significant share of HNWs in the country. The situation is slowly evolving, however, with female HNW investors, especially the salaried, becoming an increasingly attractive target segment.
The US wealth management market report sizes the opportunity within the US wealth market and analyzes the investment preferences, service requirements, and portfolio allocations of the country’s HNW investors.
What are the market dynamics in the US wealth management market?
US HNW individuals make their fortunes predominantly through earned income. US-based companies are known to offer relatively high and lucrative compensation to executives. What is perhaps a little surprising is the small percentage of HNW individuals pulling their fortunes from entrepreneurship, which is becoming a growing source of wealth generation across the world. The small percentage is also surprising given that the US leads the global startup market. While failure is notably more likely among nascent businesses, new entrepreneurs represent a lucrative market for wealth managers willing to target individuals who do not yet qualify as HNW. Supporting entrepreneurs during the early stages of their business venture allows providers to beat the competition and create loyalty early on. With lack of capital the number one challenge faced by early-stage business owners, supporting entrepreneurs during the capital raising process is key.
The inheritor market, although currently very small, is set to grow over the next decade given the age structure of the current HNW cohort, which is dominated by older affluents. This will lead to an increase in inheriting spouses and second- and third-generation inheritors gaining a significant share of HNW wealth in the next 10 years. Given that HNW inheritors often tend to be less financially savvy than other investors, they will be interested in services such as financial education and discretionary asset management.
What are the key investment preferences for HNW investors in the US wealth management market?
The key investment preferences for HNW investors in the US wealth management market are advisory asset management, automated investment services, discretionary asset management, and execution-only asset management. The demand for automated investment services is expected to increase at a healthy pace.
US wealth management market, by investment preferences
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What are the key reasons for expatriation for HNW investors in the US wealth management market?
The key reasons of expatriation for HNW investors in the US wealth management market are job transfer, retirement, business start-up, tax efficiencies, better opportunities for children, better lifestyle conditions, and political/economic instability. Better opportunities for children is one of the major drivers of expatriation.
The US wealth management market, by reasons of expatriation
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What are the major asset classes of wealth allocation for HNW investors in the US wealth management market?
Equities, cash and near cash, bonds, property, alternatives, and commodities are the major asset classes of wealth allocation for HNW investors in the US wealth management market. HNW investors assign the largest proportion of their wealth to equities. This asset class is also forecast to experience the largest increase in HNW demand over the next 12 months, presenting wealth managers with notable challenges given the current investment environment.
US wealth management market, by major asset classes of wealth allocation
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What are the major asset classes of offshore investment for HNW investors in the US wealth management market?
The major asset classes of offshore investment for HNW investors in the US wealth management market include equity, cash and near-cash products, bonds, property, alternatives, and commodities. Investing in offshore bonds is an important diversification tool for most HNW investors in the US. Offshore bonds can enhance the risk-adjusted return of the HNW portfolio by diversifying across different economies with varying growth rates, interest-rate regimes, yield curves, inflation policies, and currencies.
The US wealth management market, by offshore investment
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Market report scope
| Key investment preferences | Advisory Asset Management, Automated Investment Services, Discretionary Asset Management, and Execution-Only Asset Management. |
| Key reasons for expatriation | Job Transfer, Retirement, Business Start-Up, Tax Efficiencies, Better Opportunities for Children, Better Lifestyle Conditions, and Political/Economic Instability |
| Major asset classes of wealth allocation | Equities, Cash and Near Cash, Bonds, Property, Alternatives, and Commodities |
| Major asset classes of offshore investment | Equity, Cash and Near Cash, Bonds, Property, Alternatives, and Commodities |
Scope
- Expats represent an attractive target market thanks to their more complex service requirements.
- The market for robo-advisory services is growing rapidly in the country’s HNW space.
- Equities, cash and near-cash investments, and property dominate the US HNW asset portfolio.
Reasons to Buy
- Develop and enhance your client targeting strategies using our data on HNW profiles and sources of wealth.
- Enhance your marketing strategies and capture new clients using insights from our data on HNW investors’ asset management style preferences.
- 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 demand expressed by US HNW investors and react proactively to forecasted changes in demand.
Key Players
Table of Contents
List of Figures
Frequently Asked Questions
The key investment preferences for HNW investors in the US wealth management market are advisory asset management, automated investment services, discretionary asset management, and execution-only asset management.
The key reasons of expatriation for HNW investors in the US wealth management market are job transfer, retirement, business start-up, tax efficiencies, better opportunities for children, better lifestyle conditions, and political/economic instability.
Equities, cash and near cash, bonds, property, alternatives and commodities are the major asset classes of wealth allocation for HNW investors in the US wealth management market.
The major asset classes of offshore investment for HNW investors in the US wealth management market include equity, cash and near-cash products, bonds, property, alternatives, and commodities.
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