Wealth in the US: HNW Investors; Understanding HNW investors and wealth management strategies
All the vital news, analysis, and commentary curated by our industry experts.
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.
Reasons to Buy
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.
US Securities and Exchange Commission
Table of Contents
US HNW clients prefer custom and discretionary approaches to wealth management
Critical success factors
PROFILING THE US HNW INVESTOR
Earned income accounts for the largest proportion of US HNW wealth
Inheritors are the second-largest segment
HNW wealth is sourced from financial and technological industries
Expats account for
5.6% of the US HNW population
Strict visa requirements limit the expat opportunity in the US
The increase of US HNW expats from China is notable
Foreign exchange is the main reason HNW expats move investments to the US
US HNW INVESTMENT STYLE PREFERENCES
Greater demand for discretionary mandates is widely forecast
HNW investors invest a portion of their wealth independently to avoid fees
UNDERSTANDING ASSET ALLOCATION TRENDS AMONG US HNW INVESTORS
Current asset allocation is heavily weighted towards equities
Equity and alternative investments dominate HNW portfolios
Equity investments make up nearly half of US HNW portfolios
Bonds represent less than 25% of US HNW portfolios
HNW individuals shift assets away from cash investments
HNW client portfolios allocate the least to property investments
Commodity investments are of little interest to US HNW clients
Alternatives constitute 26% of the typical HNW portfolio
US HNW PRODUCT AND SERVICE DEMAND
Planning services are in high demand in the US
US HNW individuals show strong demand for pension planning
Inheritance planning presents an opportunity for wealth managers to resonate with recipients
A holistic approach to wealth management is key for resonating with the US HNW market
Tax planning advice is in high demand in the US
HNW managers should aim to capture market share for investment property services
Abbreviations and acronyms
Verdict Financial's 2015 Global Wealth Managers Survey
Verdict Financial's 2014 Global Wealth Managers Survey
About Verdict Financial
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