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 the successful transfer of wealth to beneficiaries. The range of countries of origin among HNW expats in the US is diverse, with the majority from China and the UK. Over one third of client investment portfolios are allocated into equity investments, and with continued market uncertainty expected in the future, greater importance is placed on cash holdings.
- 38.2% of US HNW individuals have gained wealth either as family business owners or as first-generation entrepreneurs. As these sources of wealth continue to increase in importance, greater demand is expected for personalized wealth management services.
- The majority of HNW investments are held in discretionary mandates. However, wealth managers expect growing demand for execution-only asset management and automated investment services in the next two years. This is reflective of some clients preferring a higher level of involvement in their investment choices.
- Equities are the main constituent of a US HNW investment portfolio, representing nearly half of an average US HNW portfolio. Though cash investments make up just 5.1% of an average HNW portfolio, they are gaining importance.
- Among planning services, financial planning shows the strongest demand. But wealth managers will do well to provide a complete suite of tax planning services, as 68.9% expect demand for these services to increase in the near future.
Key Topics Covered:
1. Executive Summary
1.1. US HNW clients prefer custom and discretionary approaches to wealth management
1.2. Key findings
1.3. Critical success factors
2 Profiling the US HNW Investor
2.1. Earned income accounts for the largest proportion of US HNW wealth
2.2. Expats in the US are a small but important segment
3 US HNW Investment Style Preferences
3.1. US HNW investors prefer their wealth professionally managed
3.2. US HNW individuals prefer their portfolios to be managed by a professional
4 Understanding Asset Allocation Trends among US HNW Investors
4.1. Current asset allocation is heavily weighted towards equities
5 US HNW Product and Service Demand
5.1. Planning services are in high demand in the US
- Lombard International Assurance
- RBC Wealth Management
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