BERWYN,
Pa., Oct. 10, 2024 /PRNewswire/ -- Attracting
and retaining high-net-worth (HNW) investors as lifelong clients is
a critical focus for many financial advisors, yet the path to
successfully engaging this lucrative client segment remains
complex. Envestnet's latest research sheds light on the strategies
and solutions that can help advisors better serve HNW clients and
grow their practices. According to Envestnet's 2024 Advisor
Perspectives Survey1, nearly one-third of advisors are
set to enhance their focus on services tailored for HNW or
ultra-high-net-worth (UHNW) clients. This number rises to 40% among
firms managing over $500 million in
assets.
"More than two-thirds of investable assets are now tied to HNW
and UHNW investors.2 Understanding the needs and
expectations of HNW clients is crucial for advisors looking to grow
their business and engage with this sophisticated client segment,"
said Michael Featherman, CFA,
Head of Advisor Sales and Wealth Consulting at Envestnet. "At
Envestnet, we're thrilled to advance our product and technology
offering, and expand our distribution efforts to better enable
advisors looking to succeed in this high-growth part of their
business."
To support the evolving needs of advisors, Envestnet has
expanded its national distribution efforts within its Private
Wealth Consulting business by 50%. The geographically dispersed
Envestnet Advisor Sales and Wealth Consulting team is focused
on supporting HNW advisor business growth by providing the
technology tools and wealth solutions they need to attract and
retain HNW investors. Through holistic advice and personalized
services on Envestnet's flexible and integrated wealth management
platform – advisors can access advanced HNW solutions including tax
overlay; UMA-eligible direct index solutions; alternatives, options
and structured investments.
Further, with more advisors considering ways to incorporate
greater customization within their HNW portfolios, Envestnet is
enhancing its product and technology offering with solutions like
direct indexing and tax overlay capabilities, to help advisors
better personalize their portfolio management services. To deliver
these custom solutions, the expanded distribution team can offer
white glove, private wealth consulting for accounts over
$1M, designed to meet an individual
investor's specific needs.
In addition, and to address advisor need for proposal generation
support, Envestnet has launched a Proposal Desk supported by its
Wealth Consulting Team to serve as a resource that removes training
barriers and allows advisors to more seamlessly and successfully
generate a higher volume of outsourced managed account proposals
for their HNW clients.
"Every advisor aims to work with more high-net-worth clients due
to the higher revenue and valuable referrals they bring," said
Phil Buchanan, Executive Chairman
of the Board at Cannon Financial Institute. "However, many
advisors currently have a small proportion of HNW clients.
Envestnet's research shows that 57% of advisors have less than 20%
of their clients with a net worth over $5
million. What Envestnet is offering through their private
wealth consulting is a tremendous value for the advisors of these
top clients."
"Our enhanced product and distribution efforts to help advisors
expand their HNW client base are poised to significantly benefit
the industry, while also providing greater value to investors,"
concluded Featherman.
To learn more, contact Envestnet's Advisor Sales and Wealth
Consulting team, or visit Private Wealth Consulting on
Envestnet.com.
In June, Envestnet announced it was strengthening partnerships
with several large asset managers to give advisors advanced tools
for custom-tailored investment strategies. The program features
UMA-eligible direct index solutions, Strategist UMA models for HNW
and UHNW clients, and bespoke consulting for accounts over
$1M. These innovations allow advisors
to create highly personalized strategies, including new investment
options, addressing specific client goals and circumstances, and
are accessible at scale to over 110,000 advisors on the Envestnet
platform.
About Envestnet
Envestnet is helping to lead the
growth of wealth managers and transforming the way financial advice
is delivered through its ecosystem of connected technology,
advanced insights, and comprehensive solutions – backed by
industry-leading service and support. Serving the wealth management
industry for 25 years with more than $6.2
trillion in platform assets—more than 110,000 advisors, 17
of the 20 largest U.S. banks, 48 of the 50 largest wealth
management and brokerage firms, more than 500 of the largest RIAs
-- thousands of companies, depend on Envestnet technology and
services to help drive business growth and productivity, and better
outcomes for their clients. Data as of 6/30/24.
Envestnet refers to the family of operating subsidiaries of the
public holding company, Envestnet, Inc. (NYSE: ENV). For a deeper
dive into how Envestnet is shaping the future of financial advice,
visit www.envestnet.com. Stay connected with us for the latest
updates and insights on LinkedIn and X (@ENVintel).
MEDIA CONTACTS:
Amy Norcini
Envestnet
amy.norcini@envestnet.com
Andrew Jennings | JConnelly for
Envestnet
envestnetpr@jconnelly.com
_____________________________________
1 Envestnet Market Intelligence Advisor Survey, 2024,
https://go.envestnet.com/Advisor-Perspectives-2024
2 Source: Cerulli U.S. High-Net Worth and Ultra High-Net
Worth Markets, 2023
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SOURCE Envestnet, Inc.