10 Trends Driving the High-Net-Worth Market: Cerulli

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Wealth has become even more concentrated at the top of the income spectrum over the past decade, and wealth managers aiming to grow their practices have clearly taken notice.

In fact, according to Cerulli Associates researchers Chayce Horton and Matt Zampariolo, the high-net-worth and ultra-high-net-worth marketplace is now a strong focus for many advisors and brokers, including those who have previously concentrated in the mass-affluent client segment.

Serving highly wealthy clients has its obvious advantages, including potentially higher margins and a faster asset growth rate, the pair explained Wednesday during a webcast. The strategy also comes with big challenges, including higher service expectations and the potential for serious disruption to the business if too much of the practice’s success is tied up in a small number of big relationships.

As such, it is important for advisors and firm leaders to understand how the HNW and UHNW marketplace has evolved, especially in the wake of the Great Recession and the COVID-19 pandemic. Getting the approach right can unlock serious growth, Horton and Zampariolo argued, while making mistakes can alienate existing clients across the wealth spectrum.

See the accompanying slideshow outlining 10 key themes and concepts that Horton and Zampariolo discussed during the Cerulli webcast.

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