The personal trust market is consolidating among the largest banks, according to data compiled from the FDIC for Spectrem’s 2014 Personal Trust Update.
The update shows that the top 10 banks now hold 60 percent of the personal trust accounts, equaling $569 billion in assets. The amounts in managed personal accounts are at the highest mark since the recession, and the total assets in non-managed accounts continues to move up, although not yet returned to its 2008 level.
More than $173 billion in assets were invested into municipal, county and state obligations, and $80 billion went into money market mutual funds. Seventy-three billion was invested in private equity and unregistered funds.
Spectrem examines investment structures by Ultra High Net Worth investors, with a net worth between $5 million and $25 million, and the $25 Million Plus investors. Of those groups, 43 percent of UHNW investors have assets in the legal structure of a trust, and 58 percent of the $25 Million Plus investors do so.
Fourteen percent of the $25 million Plus use the financial institutions in the role of trustee, and 12 percent of the UHNW investors do so.
There are 614,000 trust accounts being held in 1,397 reporting institutions. While assets are climbing, the number of trust accounts is dropping, a fact Spectrem calls to attention in its summary of the report.
For more information on Spectrem's Personal Trust Update, click here