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.
Envestnet is transforming the way financial advice is delivered through an ecosystem of technology, solutions, and intelligence. By establishing the connections between people's daily financial decisions and long-term financial goals, Envestnet empowers them to make better sense of their finances and live an Intelligent Financial Life?. For more information, visit www.envestnet.com. (PRNewsfoto/Envestnet)
"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.
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).
