United States (US) Wealth Management – High Net Worth (HNW) Investors
Powered by
All the vital news, analysis, and commentary curated by our industry experts.
This report analyzes the investment preferences and portfolio allocations of US HNW investors. It profiles them in terms of their demographics, analyzes their propensity to invest offshore, and explores product and service demand.
The US HNW population is dominated by professional males, but female HNW individuals and entrepreneurs also represent lucrative target segments. HNW wealth is spread across multiple different investment mandates, with advisory mandates having a slight edge. However, offering a multi-service proposition underpinned by a proven ability to demonstrate returns will be key to tapping into demand. A growing appetite for robo-advice coupled with increasing demand for all planning services provide the most significant growth opportunities for global wealth managers in the foreseeable future.
What are the Market Dynamics in the US Wealth Management Market?
The US HNW individuals make their fortunes predominantly through earned income. US-based companies are known to offer relatively high and lucrative compensation to executives but a little surprising is the small percentage of HNW individuals pulling their fortunes from entrepreneurship. This 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. However, with lack of capital the number one challenge faced by early-stage business owners, supporting entrepreneurs during the capital raising process is key.
Although, the inheritor market is currently very small but 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. As 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
Buy the Full Report to Get More Investment Preference Insights on the US Wealth Management Market or,
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
Buy the Full Report to Get More Insights on the Reasons of Expatriation or,
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
Buy the Full Report to Get More Asset Classes of Wealth Allocation Insights or,
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 Analysis, by Offshore Investment
Buy the Report to Get More Insights on the Asset Classes of Wealth Allocation Insights or, Download a Free Sample Report
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 constitute 20.5% of the local HNW population. They represent an attractive target market thanks to their more complex service requirements.
• Robo-advice accounts for 18.7% of the US HNW portfolio.
• Equities and cash and near-cash investments lead the US HNW asset portfolio.
• The average US HNW investor offshores 52.4% of their wealth abroad.
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.
Signature Bank
Silvergate Bank
Wells Fargo
Bank of America
Citigroup
Nvidia
Microsoft
Meta
Amazon
VentureWell
Ally
Table of Contents
Figures
Frequently asked questions
-
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.
-
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.
-
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.
-
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.
Get in touch to find out about multi-purchase discounts
reportstore@globaldata.com
Tel +44 20 7947 2745
Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.