State-registered banks are the fastest growing bank wealth management segment in the US, according to new research from analytics firm Cerulli Associates.
In their High-Net-Worth and Ultra-High-Net-Worth Markets 2013: Understanding the Contradictory Demands of Multigenerational Wealth Management report, Cerulli analyses the US high-net-worth (HNW) (investable assets greater than $5 million) and ultra-high-net-worth (UHNW) (investable assets greater than $20 million) marketplaces.
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The report shows a break out of trust assets by national- and state-registered banks. According to Cerulli, this has become increasingly important to asset managers because in recent years numerous state-registered trust companies have formed due to states liberalising their trust laws.
"Despite the post-crisis damage to the reputations of many major investment banks, investors continue to turn to bank trusts for long-term multigenerational wealth strategies," commented Donnie Ethier, associate director at Cerulli.
"While bank trust assets have consistently increased since 2008, state-chartered bank trusts have been buoying the overall growth," Ethier explained. "This is due to both new trust companies electing state charters, as well as many smaller, regional banks electing to sidestep federal regulation."
Bing Waldert, director at Cerulli concluded:"By recognizing the subtleties of each segment, asset managers can better determine the true opportunity and position their wealth-preservation-oriented products."
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