Attracting young successors as clients is key to growth for many asset managers, but few consider it a true priority.
A new report from financial planning parent company Arizent explains how advisors can keep up with peers who are furthering the acquisition of the next generation of high net worth clients.Industry research company Ceruri Associates Projects Assets to be $72.6 Trillion In addition to the $11.9 trillion going to charities, the so-called “massive wealth transfer” will be passed on to heirs through 2045.
read more: To win massive wealth transfers, financial advisors must actively reject the old narrative
Arizento’s Report”Catch the next wave of customers‘ was released on June 19th and was sponsored by Nuveen. Previewed findings in collaboration with Arigent at FP’s INVEST 2023 meeting.
Wealth management professionals surveyed agreed that client acquisition was a key growth driver, but behind high-net-worth clients with at least $1 in investable assets, young investors were “attracting” Only 35% consider it “highest priority” or “high priority but not important.” This includes not only clients with $1 million to less than $30 million, but also ultra-high net worth clients who have at least her $30 million, business owners and retirement plans like her 401(k).
But according to Chase Horton, a research analyst on Seruli’s wealth management team, the transfer of massive wealth is “already accelerating.”
“Intergenerational wealth transfers by wealthy households are expected to double from $700 billion a year in 2023 to $1.4 trillion in 2033,” Horton said.
read more: Wealthy investors are doing a terrible job of telling heirs what they get: report
Chasing older ultra-rich investors single-mindedly can mean missing out on where the money actually goes when they hand it over, and that could happen soon.
Arizento’s survey, conducted online in April 2023, surveyed 394 respondents, most of whom held senior positions in firms such as news agencies, national/regional broker-dealers, and registered investment advisors. was sitting 35% of companies have more than $1 billion in assets under management, 38% have between $100 million and $999.9 million in assets under management, and 27% have less than $100 million in assets under management.
Scroll down to view key takeaways from the study. View the full report here.
read more: Original Research: Catching the Next Wave of Customers