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October 17, 2023 at 04:26 PM
Affluent investors’ growing demand for holistic advice will continue to increase as they seek to get the most out of efforts to pursue their financial goals, according to a report released Tuesday by Cerulli Associates.
Cerulli estimates that U.S. investors account for some $55 trillion in total financial assets, down from $65 trillion a year ago — and roughly 300,000 households are no longer in the high-net-worth population. Nonfinancial assets continue to tick upward because of housing market growth, Cerulli said, but this has also slowed as high interest rates weigh on housing demand.
Cerulli’s research shows a robust appetite for financial advice as well as a willingness to pay for it as mass affluent investors increasingly focus on asset preservation. Over the past year, the firm’s advisor-reliant category of investors has increased from 36% to 41% as self-directed investors and those seeking advice look to connect with trusted advisors.
Two-thirds of affluent investors within the advisor-reliant category consistently rank access to customized investment solutions as a main reason they turned to an advisor. Cerulli found that managed-account sponsors are responding to this need, with 62% placing a strategic priority on personalization tools.
Creating asset allocations that match investors’ risk tolerances and timelines is the core element of personalized portfolios, Cerulli said, and the ongoing evolution of wealth managers’ technology stacks is making it a lot easier for advisors to take this personalization element to the individual security level.
