Wealth managers need to upgrade their services to meet the evolving demands of high-net-worth ( HNW ) investors, a new report says, noting that the intergenerational wealth transfer – estimated to reach US$105 trillion through 2048 – is gaining momentum and influencing the market.

Wealth creation and concentration among HNW households have surged in recent years, leading to an industry-wide focus on capturing HNW assets. By 2028, the total adviser-managed HNW industry is expected to surpass US$30 trillion in assets under management, with an expected annual growth rate of 9.3%, research and consulting firm Cerulli Associates says in the latest Cerulli Edge – US Advisor Edition.

“Across the wealth management industry, the climate is ripe for practices looking to move upmarket, and firms are making this move by investing in and expanding their service offerings,” says Cerulli wealth management analyst Andrew Larsen.

“HNW investor-focused practices, sensing the growing value of both attracting new wealthy clients and retaining current premier clients, have been adding more comprehensive services at a rapid pace over the past several years to accommodate their clients’ nuanced needs.” 

Among wealth managers focused on serving HNW investors, an average of 12 services were offered last year, up from 10 in 2017. While the most common services offered are asset allocation ( 95% ), basic financial planning ( 89% ), and cash management ( 84% ), a select array of services has been seeing wider adoption in recent years. 

For example, trustee administration and trustee services jumped to 61% last year, from 42% in 2017, while private banking services rose to 59% from 34% during the period.

In 2017, 56% of HNW practices offered estate planning services in-house; by 2024, that share had grown to 73%. Tax planning, preparation, and compliance services have also seen wider adoption, from 29% of HNW practices in 2017 to 38% last year.

“Wealthy investors have more complex service demands than the average client, and these needs are a deciding factor in their choice of adviser,” says Larsen.

“Advisers must deliver a ‘white-glove experience’ and superior levels of service across every aspect of the client service spectrum. Practices that can meet these service needs with a strategy for reliably scaling them will have more success attracting HNW clients – and gaining their trust.”