Envestnet Unveils Strategies to Attract High-Net-Worth Clients

Envestnet

BERWYN, PA — Envestnet (NYSE: ENV) has announced new strategies to help financial advisors attract high-net-worth (HNW) clients, drawing on insights from its latest research. The 2024 Advisor Perspectives Survey reveals that nearly a third of advisors will focus more on services for HNW and ultra-high-net-worth (UHNW) clients, a figure that rises to 40% for firms managing over $500 million in assets.

Michael Featherman, CFA, Head of Advisor Sales and Wealth Consulting at Envestnet, emphasized the importance of understanding HNW clients. “More than two-thirds of investable assets are now tied to HNW and UHNW investors. Understanding the needs and expectations of HNW clients is crucial for advisors looking to grow their business and engage with this sophisticated client segment,” he said.

To support advisors, Envestnet has expanded its national distribution efforts within its Private Wealth Consulting business by 50%. The team focuses on providing technology tools and wealth solutions to attract and retain HNW investors. Envestnet’s platform offers advanced solutions like tax overlay, direct index solutions, and alternative investments, tailored to individual investor needs.

Envestnet has also introduced a Proposal Desk to assist advisors in generating managed account proposals for HNW clients, enhancing their service offerings with greater customization to meet specific client needs.

Phil Buchanan, Executive Chairman of the Board at Cannon Financial Institute, highlighted the value of Envestnet’s approach. “Every advisor aims to work with more high-net-worth clients due to the higher revenue and valuable referrals they bring. 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.”

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Featherman concluded, “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.”

These initiatives highlight Envestnet’s efforts to empower advisors and enhance their ability to serve affluent clients, positioning them for success in a competitive market.

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