HNW Investors Now Control 40% of U.S. Addressable Assets

High-net-worth investors are becoming an increasingly dominant force in U.S. wealth markets, reshaping how asset managers approach distribution, product development and advisor engagement. 

Households with $5 million to $20 million in financial assets now control 40% of addressable U.S. wealth, up sharply from 18% in 2013, according to Cerulli Associates. The rapid growth in both the population and assets of HNW investors is prompting asset managers to intensify their focus on advisor practices that cater specifically to this segment. 

At the center of this shift is the continued rise of the independent RIA channel, where advisors are increasingly bringing HNW clients as they transition away from traditional wirehouses. Cerulli found that 79% of distribution executives view independent RIAs as the top growth opportunity over the next three years. 

“Advisors who primarily serve HNW clients are prime prospects for asset manager distribution teams looking to sell alternative investments and other complex products,” said Chayce Horton, associate director at Cerulli. “However, advisors can be hesitant to invest in these products because of a lack of knowledge about them.” 

That knowledge gap is shaping how asset managers engage with advisors. Nearly 49% of HNW-focused practices rank access to portfolio managers and product specialists among the most valuable resources provided by asset managers, second only to portfolio construction support (59%). 

“Asset managers must proactively offer advisors access to product specialists, along with relevant educational and marketing materials,” Horton added. “Independent RIAs… value additional educational resources, as they typically are more isolated and less likely to have a comprehensive suite of resources available to them.”