Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Wealth Management - US - January 2011

As the world begins to recover from the difficult economic environment of the past few years, there have been many changes that have come about. Investors both young and old are experiencing mixed feelings as they consider how to move forward; advisors are seeing a glimmer of interest in investing again, but also some anxiety and wariness about the potential vagaries of an economy not quite yet on its feet.

This report examines the trends, opportunities and challenges present in the wealth management industry. There are still many opportunities for success in wealth management, but it will require some adjustments both in working styles and in strategies on the part of advisors and their firms. Those who can’t or won’t make those adjustments are certain to be left behind.

The following topics are discussed in this report:

  • How wealth is being redistributed around the world so that the fastest-growing pockets of wealth are now in the emerging markets of Asia Pacific and India rather than in the more developed areas of North America and Europe
  • How the economy is slowly starting to recover, bringing increased interest in investing
  • Investors are feeling somewhat more confident in their own personal financial situation, but are still leery about the prospects of the U.S. economy
  • Trust and transparency are still the watchwords for the financial services industry; investors are willing to work with advisors, but they have strict requirements for communication and are willing to leave an advisor if they are not getting what they want
  • The major shift in the way media is used: print media readership is down, while use of electronic media is up. This trend will continue and even grow, and it is forcing investment companies to figure out how to utilize electronic media, especially as the younger generation gradually enters the investing mainstream

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Scope and Themes

      • What you need to know
        • Data sources
          • Consumer survey data
            • VMS
              • Abbreviations and terms
                • Abbreviations
                  • Companies mentioned in this report:
                  • Executive Summary

                    • Industry overview
                      • The world’s economies are recovering from recession
                        • Global wealth is growing, but is being redistributed
                          • Retirement planning now on everyone’s mind
                            • Affluent women are a big potential market
                              • New thinking required on media strategies
                                • Younger investors more risk averse
                                  • Figure 1: Willingness to take risk, all mutual fund-owning households, 2008-10
                              • Insights and Opportunities

                                  • Key points
                                    • A stronger economy is bringing investors back
                                      • Financial planning is becoming a family affair
                                        • Personalized advice is most sought after
                                          • Women are seeking more help
                                            • Retirement planning for everyone
                                              • Emerging markets will have new need
                                                • Affluent investors still look to advisors for more
                                                • Inspire Insights

                                                    • Trend: Generation Name Game
                                                    • Market Size and Forecast

                                                      • Key points
                                                        • How many affluent households are there?
                                                          • The number of millionaires is growing
                                                            • Figure 2: Global HNWI population, 2006-09
                                                            • Figure 3: HNWI Population, by region 2006-09 (in millions)
                                                            • Figure 4: Top 10 countries with the greatest density of millionaires, 2009
                                                          • There are more billionaires, too
                                                              • Figure 5: Countries with most billionaires, March 2010
                                                          • Competitive Context

                                                            • Key points
                                                              • RIAs find it harder to move
                                                                • New regulations will increase compliance burdens
                                                                  • Independent firms are increasingly attractive to brokers
                                                                    • Reasons breakaway brokers break away
                                                                    • Marketing Channels

                                                                      • Key points
                                                                        • RIAs continue to do well and are poised for continued growth
                                                                          • Figure 6: Number of RIAs, 2001-10
                                                                          • Figure 7: RIA AUM 2001-10
                                                                        • Wirehouses are feeling the asset losses
                                                                            • Figure 8: Asset market share by channel, 2007 and 2009
                                                                          • Advisory services offered by banks have to work harder
                                                                          • Market Drivers

                                                                            • Key points
                                                                              • The baby boomers are turning 65
                                                                                • Figure 9: U.S. population aged 21 or older, 2006-16
                                                                              • Wealth around the world continues to grow
                                                                                • Figure 10: Global HNWI wealth, 2006-09
                                                                                • Figure 11: HNWI Wealth distribution by region, 2006-09
                                                                              • Where the wealth is – globally
                                                                                • Where the wealth is – United States
                                                                                  • Figure 12: U.S. HNWI population in Top 10 MSAs, 2009
                                                                                  • Figure 13: Growth of HNWI population in top ten MSAs, 2007-09
                                                                                • The U.S. economy is beginning to recover
                                                                                  • Figure 14: United States GDP growth rate, adjusted by inflation, Q1 2007-Q3 2010
                                                                              • Leading Companies

                                                                                • Key points
                                                                                  • Ten largest wealth management companies in the world
                                                                                    • Figure 15: Ten largest wealth managers in the world, as of December 2009
                                                                                  • Ten largest U.S. wealth management companies
                                                                                    • Figure 16: Ten largest wealth managers in U.S., as of September 2010
                                                                                  • Bank of America/Merrill Lynch
                                                                                    • Morgan Stanley Smith Barney
                                                                                      • Wells Fargo/Wachovia
                                                                                      • Innovation and Innovators

                                                                                        • Key points
                                                                                          • Bank of America offers several new retirement planning tools—and a new campaign
                                                                                            • Raymond James offers advisors more customized marketing
                                                                                              • Northern Trust forms group to focus on gay and lesbian households
                                                                                                • Vanguard makes it easier for 401(k) participants to get answers
                                                                                                  • Wells Fargo finds a creative way to use the internet
                                                                                                  • Marketing Strategies

                                                                                                    • Key points
                                                                                                      • Overview
                                                                                                        • As recovery begins, firms are gearing up
                                                                                                          • Print readership is down, electronic usage is up
                                                                                                            • Utilizing social networks
                                                                                                              • Figure 17: Top 10 uses of the internet, by share, June 2009-June 2010
                                                                                                            • Trust is still the message
                                                                                                              • Print ads
                                                                                                                • Figure 18: Northern Trust print ad, 2010
                                                                                                                • Figure 19: Print ad, Merrill Lynch, 2010
                                                                                                                • Figure 20: Print ad, Morgan Stanley Smith Barney, 2010
                                                                                                                • Figure 21: Print ad, The Washington Trust Company, 2010
                                                                                                              • Direct mail advertising
                                                                                                                • Figure 22: Direct mail piece, ING, 2010
                                                                                                                • Figure 23: Direct mail piece, USAA, 2010
                                                                                                                • Figure 24: Direct mail piece, Fidelity, 2010
                                                                                                                • Figure 25: Direct mail piece, Vanguard, 2010
                                                                                                              • Online and email advertising
                                                                                                                • Figure 26: Online advertisement, T. Rowe Price, 2010
                                                                                                                • Figure 27: Email advertisement, Fisher Investments, 2010
                                                                                                                • Figure 28: Online advertisement, Fidelity, 2010
                                                                                                                • Figure 29: Online advertisement, T. Rowe Price, 2010
                                                                                                              • Television advertising
                                                                                                                • Figure 30: Merrill Lynch Wealth Management, 2010
                                                                                                                • Figure 31: Charles Schwab, 2010
                                                                                                                • Figure 32: T. Rowe Price, 2010
                                                                                                                • Figure 33: Fidelity, 2010
                                                                                                                • Figure 34: Vanguard, 2010
                                                                                                            • The Consumer

                                                                                                              • Key points
                                                                                                                • Household Income
                                                                                                                  • Figure 35: Household income, by gender, October 2010
                                                                                                                • Net worth
                                                                                                                  • Figure 36: Net worth of respondents, by gender, October 2010
                                                                                                                  • Figure 37: Net worth of respondents, by income, October 2010
                                                                                                                • Who uses a financial advisor?
                                                                                                                  • Figure 38: Who uses financial advisors, by gender, October 2010
                                                                                                                  • Figure 39: Who uses financial advisors, by age, October 2010
                                                                                                                  • Figure 40: Who uses financial advisors, by household net worth, October 2010
                                                                                                                • Where financial advisors work
                                                                                                                  • Figure 41: Where financial advisors work, October 2010
                                                                                                                  • Figure 42: Where financial advisors work, by household net worth, October 2010
                                                                                                                • Why people use advisors
                                                                                                                  • Figure 43: Benefits of using advisors, October 2010
                                                                                                                • Primary investment goals
                                                                                                                    • Figure 44: Primary investment goals, by gender, October 2010
                                                                                                                    • Figure 45: Primary investment goals, by age, October 2010
                                                                                                                  • Attitudes toward personal financial situation
                                                                                                                      • Figure 46: Attitudes toward personal situation, by gender, spring 2010
                                                                                                                      • Figure 47: Attitudes toward personal situation, by age, spring 2010
                                                                                                                    • Percentage of assets in investments
                                                                                                                        • Figure 48: Percentage of assets invested in real estate, by gender, October 2010
                                                                                                                        • Figure 49: Percentage of assets invested in mutual funds, by gender, October 2010
                                                                                                                        • Figure 50: Percentage of assets invested in exchange traded funds, by gender, October 2010
                                                                                                                        • Figure 51: Percentage of assets invested in separately managed accounts, unified managed accounts or private equity, by gender, October 2010
                                                                                                                        • Figure 52: Percentage of assets invested in equities including company stock, by gender, October 2010
                                                                                                                        • Figure 53: Percentage of assets invested in hedge funds, by gender, October 2010
                                                                                                                        • Figure 54: Percentage of assets invested in fixed income, by gender, October 2010
                                                                                                                        • Figure 55: Percentage of assets invested in municipal bonds, by gender, October 2010
                                                                                                                        • Figure 56: Percentage of assets invested in tax favored accounts such as retirement or educational savings accounts, by gender, October 2010
                                                                                                                        • Figure 57: Percentage of assets in each investment type, all respondents, October 2010
                                                                                                                    • Cluster Analysis

                                                                                                                        • Cluster 1: Secure, recession-proof
                                                                                                                          • Characteristics
                                                                                                                            • Cluster 2: Conservative pessimists
                                                                                                                              • Characteristics
                                                                                                                                • Cluster 3: Advised optimists
                                                                                                                                  • Characteristics
                                                                                                                                    • Characteristic tables
                                                                                                                                      • Figure 58: Wealth management clusters, October 2010
                                                                                                                                      • Figure 59: Who uses financial advisors, by wealth management clusters, October 2010
                                                                                                                                      • Figure 60: Primary investment goals, by wealth management clusters, October 2010
                                                                                                                                      • Figure 61: Attitudes toward personal situation, by wealth management cluster, October 2010
                                                                                                                                    • Demographic tables
                                                                                                                                      • Figure 62: Wealth management clusters, by gender, October 2010
                                                                                                                                    • Cluster methodology
                                                                                                                                    • Appendix: Simmons Cohort Analysis

                                                                                                                                      • Who owns what
                                                                                                                                        • Figure 63: Five most popularly held investments for all respondents, by gender, spring 2010
                                                                                                                                        • Figure 64: Most popularly held investments for all respondents with household income of $100K+, by gender, spring 2010
                                                                                                                                        • Figure 65: Most popularly held investment for all respondents whose household income is $100K and who own any investment, by gender, spring 2010
                                                                                                                                        • Figure 66: Investments with a balance of more than $100K, spring 2010
                                                                                                                                      • Attitudes toward own financial responsibility
                                                                                                                                        • Figure 67: Attitudes about financial management, by income and investment ownership, spring 2010
                                                                                                                                        • Figure 68: Attitudes about financial management, by gender, spring 2010
                                                                                                                                      • Attitude toward current financial situation
                                                                                                                                        • Figure 69: Attitudes about current financial situation, spring 2010
                                                                                                                                        • Figure 70: Attitudes toward current financial situation, by age and household income of $100K+, spring 2010
                                                                                                                                      • Attitude toward future financial situation
                                                                                                                                        • Figure 71: Attitudes about future financial situation, by age and HH income of $100K+, spring 2010
                                                                                                                                      • Outlook on the American economy
                                                                                                                                        • Figure 72: Outlook on the American economy, by age, spring 2010
                                                                                                                                      • Where accounts are held
                                                                                                                                        • Figure 73: Where mutual fund/brokerage accounts are held, by gender, spring 2010
                                                                                                                                        • Figure 74: Where mutual fund/brokerage accounts are held, by gender and HH income of $100K+, spring 2010
                                                                                                                                    • Appendix: Trade Associations

                                                                                                                                      Companies Covered

                                                                                                                                      • Bank of America Corporation
                                                                                                                                      • Bank of New York Mellon Corporation, The
                                                                                                                                      • Centers for Medicare & Medicaid Services
                                                                                                                                      • CFA Institute
                                                                                                                                      • Charles Schwab Corporation
                                                                                                                                      • Credit Suisse Group
                                                                                                                                      • Deutsche Bank AG
                                                                                                                                      • Discovery Communications, Inc.
                                                                                                                                      • Edward D. Jones & Co., L.P.
                                                                                                                                      • Employee Benefit Research Institute
                                                                                                                                      • Facebook, Inc.
                                                                                                                                      • Financial Planning Association
                                                                                                                                      • FMR Corp.
                                                                                                                                      • Goldman Sachs Group, Inc., The
                                                                                                                                      • Government Employees Insurance Company
                                                                                                                                      • HSBC USA Inc.
                                                                                                                                      • ING Bank, fsb
                                                                                                                                      • Investment Company Institute
                                                                                                                                      • JPMorgan Chase & Co
                                                                                                                                      • Levy Economics Institute
                                                                                                                                      • LinkedIn
                                                                                                                                      • Lipper Inc.
                                                                                                                                      • Mendelsohn|Zien Advertising, LLC
                                                                                                                                      • Merrill Lynch & Co. Inc
                                                                                                                                      • Money Management Institute (MMI)
                                                                                                                                      • Morgan Stanley
                                                                                                                                      • MSN (USA)
                                                                                                                                      • National Association of Realtors (NAR)
                                                                                                                                      • Northern Trust Corporation
                                                                                                                                      • Pictet & Cie, Banquiers
                                                                                                                                      • Reuters Group PLC
                                                                                                                                      • Royal Bank of Canada
                                                                                                                                      • T. Rowe Price Group, Inc.
                                                                                                                                      • TD Ameritrade Holding Corporation
                                                                                                                                      • The American Bankers Association
                                                                                                                                      • The Boston Consulting Group Inc.
                                                                                                                                      • The Martin Agency, Inc.
                                                                                                                                      • The PNC Financial Services Group
                                                                                                                                      • The Vanguard Group, Inc.
                                                                                                                                      • Turner Broadcasting System, Inc.
                                                                                                                                      • Twitter, Inc.
                                                                                                                                      • U.S. Bureau of the Census
                                                                                                                                      • U.S. Securities and Exchange Commission
                                                                                                                                      • UBS Financial Services Inc.
                                                                                                                                      • USAA
                                                                                                                                      • Wachovia Corporation
                                                                                                                                      • Wells Fargo & Company
                                                                                                                                      • YouTube, Inc.

                                                                                                                                      Wealth Management - US - January 2011

                                                                                                                                      £2,684.63 (Excl.Tax)