Magazine article American Banker

Fidelity, B of A, Goldman Popular with Millionaires

Magazine article American Banker

Fidelity, B of A, Goldman Popular with Millionaires

Article excerpt

Byline: Matt Ackermann

Fidelity Investments, Bank of America Corp. and Goldman Sachs Group Inc. manage wealth for the largest percentage of U.S. millionaires, according to a survey by Fidelity.

Of the 4.1 million U.S. households with at least $1 million of investable assets, 37% have at least one account with Fidelity, according to the third annual Fidelity Millionaire Outlook, which was released Wednesday. The Boston company would not specify the percentage of households that use Bank of America or Goldman Sachs, but it said they are second and third.

Gail Graham, an executive vice president for Fidelity Institutional Wealth Services, said consolidation in the financial services industry in the past year has left more millionaires using fewer providers, but most are remaining with their advisers.

"Some people are adding advisers as a way of getting a second opinion," Graham said in an interview Tuesday. "I think clients are assessing the environment, but not taking any action right now when it comes to changing advisers."

Millionaires are "beginning to invest more and are reassessing their portfolios," she said. "They are not passive, but they are not necessarily switching firms yet."

She said that some financial advisers are approaching wealthy individuals and saying, "Don't move all of your assets, but give me a try too."

Commercial and private banks remain important channels for delivering wealth management to wealthy individuals,Graham said. And now that some banks own wirehouses, she said, "I fully expect banks will be an even more important channel."

The average respondent to the Fidelitysurvey, which was conducted in the first quarter, was59 years old and had $3.5 million of investable assets and $306,000 in annual household income.But 46% of the group said they did not feel wealthy and were taking action to reassess and rebuild their wealth. …

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