TOP US WEALTH MANAGEMENT TRENDS TO WATCH IN 2023 :
RESILIENCY IN AN UNCERTAIN ENVIRONMENT
Michael Daly, Simon Zais, Kevin Caldwell and Will Zhang
Published: 03 April 2023
The US wealth management industry enters 2023 facing headwinds. Due to slowing macroeconomic growth and investment volatility, asset growth stalled in 2022 with US households losing nearly $7 trillion in net worth through Q3 2022.
To combat inflation and rising interest rates, investors are seeking differentiated portfolio strategies (including private markets and direct indexing) and tactics to de-risk their portfolios. Wealth managers embrace the benefits of long-term planning by leaning into alternative investments and customized product growth while continuing to prioritize advice, client acquisition, and deepening relationships with next-generation investors.
While M&A activities demonstrate consolidation across the industry, firms can pursue takeover targets at more attractive valuations. Given longer-term cost-savings potential, firms should prioritize strategic investments in Artificial Intelligence (AI), Machine Learning (ML), and ESG while reducing non-critical technology investments.
Wealth managers have demonstrated resiliency in navigating challenging environments in the past and kick off the year from a position of relative strength given these growth opportunities.
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