Asset and Wealth Management Trending Themes

We are pleased to bring you the ninth edition of "The Monthly Market Pulse - Trending Themes in Asset and Wealth Management."

This edition delves into three pivotal trends significantly shaping the asset and wealth management sector:

1. Financial Wellness Programs Enter Employee Benefits: This trend explores the accelerating adoption of financial wellness solutions in the US workplace, driven by employee demand and the opportunities enabled by SECURE 2.0. It highlights the strategic response of retirement providers, who are partnering with fintechs to integrate scalable services like student debt and HSA support.
2. Unlocking the HNW Walletshare: This section investigates the industry's strategic move upmarket to capture a share of the $105 trillion wealth transfer. The analysis details how firms are moving from foundational offerings to a comprehensive suite of specialized HNW services, including trust administration and private banking.
3. Muni ETFs Outpace Mutual Funds: This part examines the fundamental shift in municipal finance, where Muni ETFs are dramatically outperforming traditional mutual funds, attracting more than double the capital flow year-to-date. This divergence is driven by the ETF structure's lower costs and dual appeal to both retail and institutional investors.

These interconnected trends underscore a dynamic environment where evolving client expectations, a focus on comprehensive service, and a fundamental shift in investment vehicle preferences are collectively shaping the opportunities and challenges for Asset and Wealth Management firms aiming for future growth. This collective evolution signals a profound transformation across the sector, pushing firms to rethink traditional models and embrace new approaches to remain competitive and relevant.

Financial Wellness Programs Making In-Roads into Employee Benefit Offerings

Introduction

• The adoption of financial wellness solutions in US workplaces is gaining momentum. This acceleration is largely driven by ongoing financial pressures, rising employee expectations, and continuous improvements in workplace benefit offerings
• Industry experts, particularly DC consultants, foresee strong growth in solutions such as Health Savings Accounts (HSAs), student debt repayment options, and emergency savings programs. Supporting this outlook, a T. Rowe survey revealed that 85% of DC consultants expect a significant expansion of in-plan student debt programs and HSAs over the next three to five years
• At the same time, employers are recognizing their vital role in supporting financial wellness. A Jun 2025 JP Morgan survey found that 80% of plan sponsors recognize their responsibility to support employees’ financial wellness, and many are responding by broadening their benefit offerings to better address these needs

Setting the Context: There is a growing anticipation for expanded features and enhancements within financial wellness programs

• According to T. Rowe Price’s Sep 2025 DC Consultant Study, there is widespread anticipation of greater uptake for financial wellness programs, both within and beyond employer-sponsored retirement plans among consultants specializing in defined contribution (DC) strategies
• This trend highlights a growing awareness of how short-term financial needs impact retirement outcomes, an increasing demand from employees for employer-provided support in these areas, and reflects expanded choices stemming from new options enabled by SECURE 2.0

Industry Response & Adaptation: Retirement providers are taking proactive steps to broaden their financial wellness offerings and are increasingly collaborating with third-party vendors to deliver enhanced experiences for plan participants

• Addition Wealth (a fintech firm): In Jul 2025, launched a B2B financial wellness platform for large enterprises. The AI-powered, fully customizable platform enables organizations to distribute, white-label, or co-brand financial wellness experiences at scale. Designed for insurance providers, asset managers, retirement companies, PE firms, and other financial institutions  
• Voya (6th largest DC Recordkeeper by Assets): In Jun 2025, collaborated with Savi (a student loan and education benefits provider) to offer clients a comprehensive suite of student loan debt solutions. Savi’s student loan solutions complement Voya’s support of the SECURE 2.0 Act’s student loan match provision
• Empower (2nd largest DC Recordkeeper by Assets): In Feb 2025, launched integrated, consumer-directed healthcare offering in partnership with Alegeus Technologies (a leader in healthcare technology solutions). Benefits include HSAs, flexible spending accounts, health reimbursement arrangements, wellness incentives, and lifestyle benefits

Evalueserve Perspective:

• Retirement providers could look to collaborate with specialized fintech vendors and third-party solution providers to integrate innovative tools (e.g., for student loan management or wellness incentives) and ensure scalable, seamless participant experiences
• AWM firms need to develop white-label or co-branded financial wellness solutions to allow employers flexibility and control in customizing the participant experience to organizational culture and demographics

Unlocking Walletshare: Industry Strategies to Attract and Retain HNW Clients

Introduction

• The wealth management industry is on the brink of a significant shift, driven by a projected $105 trillion intergenerational wealth transfer and the growing concentration of assets among high-net-worth (HNW) households
• According to a recent Cerulli report, the total advisor-managed HNW market is expected to exceed $30 trillion in assets under management (AUM) by 2028, with an annual growth rate of approximately 9.3%. This presents a powerful incentive for wealth management firms to strategically move upmarket

Setting the Context: In response to this opportunity, wealth management practices are rapidly expanding their service portfolios to attract and retain HNW clients.

• The shift is characterized by a move from foundational offerings to a more comprehensive suite of services. According to a Cerulli report, the average number of services offered by HNW-focused wealth managers has increased from 10 in 2017 to 12 in 2024.
• While core services like asset allocation, financial planning, and cash management remain prevalent, there has been a notable surge in the adoption of more specialized services. For example, the report indicates that the use of trust administration and private banking services has seen significant growth since 2017. Trust administration and trustee services jumped from 42% adoption in 2017 to 61% in 2024, while private banking services increased from 34% to 59% in the same period. Similarly, the provision of in-house estate planning services grew from 56% to 73%, and tax-related services rose from 29% to 38%

Industry Response & Adaptation: Major industry players are actively responding to this trend by investing in enhanced client experiences and expanding their physical footprints.

• Edward Jones: In September 2025, the firm announced ongoing investments to improve its HNW client experience. This includes opening four new physical locations exclusively for HNW clients and providing new training programs to advisors. Edward Jones is also broadening its product offerings to support portfolio diversification and tax optimization for these clients. Many of these changes are part of their new private client service, Edward Jones Generations          
• Charles Schwab: The firm revealed plans in September 2025 to expand its branch network and hire over 400 new branch-related roles, including financial and wealth consultants. These new consultants will partner with financial consultants to serve the wealth management needs of both HNW and ultra-high-net-worth (UHNW) clients 
• JPMorgan Chase: As part of its strategy to attract and cater to affluent clients, JPMorgan Chase is opening 14 new financial centers across the US. With a goal of having 31 such centers by the end of 2026, the firm aims to redefine client service by offering a highly personalized model backed by its global capabilities. These new centers are designed to provide greater flexibility and exceptional care for their affluent clientele

Evalueserve Perspective:

• To successfully capture the immense opportunity in the HNW and UHNW markets, firms must deliver a highly personalized and comprehensive client experience. This means providing a wide range of tailored solutions—from specialized services like tax planning and philanthropic guidance to proactive client engagement—which becomes a key differentiator for attracting and retaining this clientele.
• Given the high stakes for capturing a larger share of a client's "walletshare," firms must focus on the ability to strategically scale their comprehensive offerings. By leveraging technology and integrated platforms, industry players can ensure that advisors have seamless access to the expertise and resources needed to consistently deliver complex, high-touch services and build the trust required to win and keep wealthy clients.

The Great Divergence: How Muni ETFs are Winning the Fixed Income Flow Battle

Introduction

• Municipal bond Exchange-Traded Funds (ETFs) have dramatically outpaced traditional mutual funds in attracting investor capital this year, clearly indicating a fundamental shift in preference toward the ETF structure within the municipal finance sector.
• Through the year (Jan to Aug 2025), muni ETFs have pulled in nearly $19.6 billion in net new investments. This figure is more than double the approximately $8 billion gathered by their mutual fund counterparts, based on CreditSights data.
• This market divergence was most evident in August, a period when ETFs secured over $4.5 billion in inflows, contrasting sharply with mutual funds, which registered negative net flows for the month

Setting the Context: Municipal bond ETFs have steadily gained traction since their 2007 introduction, driven by their lower costs and dual appeal to both retail and institutional investors

• At the start of 2025, the municipal ETF market comprised of 112 ETFs from 36 different issuers, commanding a combined USD 141 billion in assets. This segment has shown consistent growth since its debut. Despite this growth, the market remains concentrated, with ~41% of total municipal ETF assets held in BlackRock products and ~27% in Vanguard products
• The cost advantage has particularly resonated with retail investors, especially younger ones, which CreditSights calls a generational shift. For those in the "accumulation mode," establishing and adding to a position in an ETF is seen as very straightforward.
• Furthermore, institutional investors are increasingly incorporating ETFs into their strategies, primarily using the vehicle as a method to diversify liquidity risk within their overall bond portfolios

Industry Response & Adaptation: Asset managers are broadening their product offerings by incorporating municipal bond portfolios, and in recent months, several major US asset managers have introduced municipal bond ETFs

• Northern Trust - In Aug 2025, Northern Trust introduced three new fixed income ETF suites designed for investors seeking laddering strategies. These products emphasize municipal and inflation-linked bonds, while also offering core municipal bond options to complement broader portfolios. Municipal bonds, traditionally valued for their federal tax-exempt income, are now also seen as a compelling mix of yield and credit quality
• Vanguard - In May 2025, Vanguard launched two new tax-exempt municipal bond ETFs. Each comes with a net expense ratio of 9 basis points, providing a cost-efficient approach to building municipal bond exposure. These ETFs combine institutional-level expertise in municipal bonds with some of the lowest fees in the industry, raising the competitive bar in the market
• Fidelity: In Apr 2025, Fidelity, unveiled its first municipal bond ETFs - the Fidelity Municipal Bond Opportunities ETF and the Fidelity Systematic Municipal Bond Index ETF. Together, these funds brought in roughly $229 million in assets at their debut, significantly expanding Fidelity’s fixed income ETF offerings
• Nuveen: In Jan 2025, Nuveen widened access to its flagship municipal investment platform with the launch of two actively managed municipal bond ETFs

Evalueserve Perspective:

• Develop a focused product strategy to launch a diverse suite of low-cost, index-based municipal bond ETFs tailored to specific maturities and credit profiles to capture both retail and institutional investor demand.
• Enhance digital distribution and marketing by leveraging data analytics to target younger, accumulation-mode investors with educational content highlighting the tax efficiency and ease-of-use of muni ETFs over traditional fund structures.

We hope you find this interesting and insightful. If you want to know more about our Asset and Wealth Management offerings, check out our webpage below.

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Pratyush Prabhat, Ajay Nahar; Mayank Buttan; Pankaj Aggarwal, Rishabh Hingar