"The banking giant ( No. 17 on the Fortune 500) hosted its first investment day since 2011 on Nov. 5 in Boston. Executives set ambitious goals for the wealth unit: 4% to 5% net new asset growth in Merrill Wealth Management over the next three to five years, and revenue growth nearly twice the rate of expenses, with a target return on allocated capital rising to 30% for the entire segment."
"The U.S. is on the cusp of " The Great Wealth Transfer " -an intergenerational shift expected to move $84 trillion to $124 trillion from Baby Boomers to heirs and charities by the mid-2040s, fundamentally reshaping financial services and families. Bank of America and other big banks such as JPMorgan Chase and Citigroup are expanding wealth-management operations-competing to retain assets and attract new clients among Millennials, Gen Z, and ultra-high-net-worth families, especially those seeking values-based investing and advanced digital tools."
"Bank of America claims a 14% market share of the ultra-high-net-worth segment. "Our national footprint covers 90% of the wealth opportunity," Katy Knox, president of Bank of America Private Bank, said at the event. "We are aligning resources to capture it," she said. Knox also noted that the bank invests heavily to grow its advisor base. "Our model combines institutional power with a personal, local approach," Lindsay Hans, co-president of Merrill Wealth Management, said."
Bank of America hosted an investment day unveiling ambitious targets for its wealth and investment management business, including 4–5% net new asset growth in Merrill Wealth Management over three to five years and revenue growth nearly double expense growth. The bank aims for a 30% return on allocated capital for the segment. Executives cite the U.S. having over 20 million millionaires and the impending Great Wealth Transfer of $84–$124 trillion by mid-2040s. The firm claims a 14% ultra-high-net-worth market share, a nationwide footprint covering 90% of opportunities, roughly 15,000 advisors, and heavy investment in recruitment and digital, values-based offerings.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]