Challenges and Opportunities for the Wealth Sector in the US 2013 by WealthInsightReports

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									                                                                                                           Publication date: November 2013
                                                                                                                    Report code: WI0130MR




         Challenges and Opportunities
         for the Wealth Sector in the
         US to 2013




                                                             www.wealthinsight.com

                                                                                                                                            0
         Challenges and Opportunities for the Wealth Sector in the US to 2013
         © WealthInsight. This report is a licensed product and is not to be photocopied.



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       About WealthInsight



       The WealthInsight Intelligence Center Database is an unparalleled resource and the leading
       resource of its kind. Compiled and curated by a team of expert research specialists, the
       database comprises dossiers on over 60,000 HNWIs from around the world.



       The Intelligence Center also includes tracking of wealth and liquidity events as they happen and
       detailed profiles of major private banks, wealth managers and family offices in each market.



       With the Database as the foundation for its research and analysis, WealthInsight is able to
       obtain an unsurpassed level of granularity, insight and authority on the HNWI and wealth
       management universe in each of the countries and regions it covers.




Contact:



Ouliana Vlasova

Head of Content, WealthInsight

Ouliana.Vlasova@wealthinsight.com
+44 (0)20 7406 6711




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Challenges and Opportunities for the Wealth Sector in the US to 2013
© WealthInsight. This report is a licensed product and is not to be photocopied.
TABLE OF CONTENTS


TABLE OF CONTENTS
1     Introduction ........................................................................................................ 1
1.1         Details of this Report ............................................................................................................... 1
1.2         Definitions ................................................................................................................................ 1
2     Executive Summary........................................................................................... 5
3     Wealth Sector Fundamentals............................................................................ 8
3.1         Political Background ................................................................................................................ 8
3.2         Economic Background .......................................................................................................... 12
3.3         Social Background ................................................................................................................ 15
3.4         Benchmarking US Wealth in Context .................................................................................... 17
      3.4.1        Distribution of wealth in the US ..................................................................................... 17
3.5         HNWI Volume and Wealth Trends ........................................................................................ 18
4     Competitive Landscape of the Wealth Sector ............................................... 20
4.1         Competitive Landscape ......................................................................................................... 20
      4.1.1        Private Banks ................................................................................................................ 20
      4.1.2        Wealth managers .......................................................................................................... 22
      4.1.3        Family offices ................................................................................................................ 24
      4.1.4        Financial advisors.......................................................................................................... 27
4.2         The US Wealth Management Industry – Clientele Model and Maturity ................................ 28
4.3         Behavioral Mapping of Wealth Management and Private Banking in the US ....................... 29
4.4         Financial Services Review .................................................................................................... 30
      4.4.1        Retail Banks .................................................................................................................. 30
      4.4.2        Funds management ...................................................................................................... 31

5     Appendix .......................................................................................................... 32
5.1         Additional Components of the Wealth Sector in the US ....................................................... 32
      5.1.1        Philanthropy .................................................................................................................. 32
      5.1.2        Demand for intergenerational wealth transfer ............................................................... 32
      5.1.3        Human resource availability for the wealth management industry ............................... 32
5.2         Regulations on Taxes ........................................................................................................... 33
5.3         Regulations Related to Immigration, Investment and Employment ...................................... 35
5.4         Key Drivers ............................................................................................................................ 36
      5.4.1        Real GDP growth .......................................................................................................... 36
      5.4.2        Per capita GDP ............................................................................................................. 37
      5.4.3        Domestic market capitalization ..................................................................................... 38
      5.4.4        Commodity index........................................................................................................... 39
      5.4.5        Foreign direct investments – inflow and outflow ........................................................... 40
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Challenges and Opportunities for the Wealth Sector in the US to 2013
© WealthInsight. This report is a licensed product and is not to be photocopied.
TABLE OF CONTENTS


      5.4.6        Inflation rate ................................................................................................................... 41
      5.4.7        Interest rate ................................................................................................................... 42
      5.4.8        Balance of payments ..................................................................................................... 43
      5.4.9        Government debt........................................................................................................... 44
      5.4.10       Stock market performance ............................................................................................ 45
5.5         Wealth Breakdowns .............................................................................................................. 46

6     About WealthInsight ........................................................................................ 51




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Challenges and Opportunities for the Wealth Sector in the US to 2013
© WealthInsight. This report is a licensed product and is not to be photocopied.
TABLE OF CONTENTS


LIST OF TABLES
Table 1: HNWI Wealth Band and Group Definitions................................................................................................ 3
Table 2: Major States in the US, 2012 .................................................................................................................... 9
Table 3: Largest Cities in the US, 2012................................................................................................................. 10
Table 4: US Top 10 States by GDP, 2012 ............................................................................................................ 10
Table 5: Fastest-Growing Cities in the US by Population, 2010–2012 .................................................................. 12
Table 6: US Top 10 Private Banks by AuM, 2012 ................................................................................................. 21
Table 7: US Top Foreign Private Banks by AuM, 2012 ......................................................................................... 21
Table 8: US Wealth Managers per City, 2012 ....................................................................................................... 22
Table 9: US Top 20 Wealth Managers by AuM, 2012 ........................................................................................... 23
Table 10: US Family Offices, 2012........................................................................................................................ 24
Table 11: US Family Offices per City, 2012 .......................................................................................................... 26
Table 12: US Financial Advisors in Top Cities, 2012 ............................................................................................ 27
Table 13: US Income Tax Bands, 2012–2013 ...................................................................................................... 33
Table 14: US: Income Tax Bands, 2013–2014 (Due on April 15, 2014)................................................................ 33
Table 15: US Corporate Tax Structure, 2013 ........................................................................................................ 34
Table 16: US Real GDP Growth (%), 2008–2017 ................................................................................................. 36
Table 17: US GDP Per Capita (US$), 2008–2017 ................................................................................................ 37
Table 18: US Domestic Market Capitalization (US$ Billion) 2008–2012 ............................................................... 38
Table 19: US Commodity Indices, 2008–2017 ...................................................................................................... 39
Table 20: US Foreign Direct Investments (US$ Billion), 2008–2017 ..................................................................... 40
Table 21: US Inflation Rate (%), 2008–2017 ......................................................................................................... 41
Table 22: US Money Market Rate (%), 2008–2017............................................................................................... 42
Table 23: US Balance of Payments (US$ Billion) 2008–2012 ............................................................................... 43
Table 24: US Government Debt as a Percentage of GDP, 2008–2017 ................................................................ 44
Table 25: US Stock Market Performance, 2008–2012 .......................................................................................... 45
Table 26: US HNWI Wealth vs GDP Ratio, 2008–2017 ........................................................................................ 46
Table 27: US Appendix One ................................................................................................................................. 47
Table 28: US Appendix Two ................................................................................................................................. 48




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Challenges and Opportunities for the Wealth Sector in the US to 2013
© WealthInsight. This report is a licensed product and is not to be photocopied.
TABLE OF CONTENTS


LIST OF FIGURES
Figure 1: HNWI Wealth Band Definitions ................................................................................................................ 4
Figure 2: Map of the US .......................................................................................................................................... 4
Figure 3: US Asset Price Performance, 2008–2012.............................................................................................. 17
Figure 4: US HNWI Performance, 2008–2017 ...................................................................................................... 18
Figure 5: US vs Global HNWIs .........................................................................................
								
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