Tax policy is back in the spotlight, and that matters for you if you own, or are considering, asset management and public equity firms. A potential billionaire tax, higher corporate rates, and changes to inheritance rules could reshape how wealth is taxed and how capital flows into markets. At the same time, a proposed national public equity fund points to wider equity ownership over time. This article looks at how these ideas could affect the sector and highlights 3 stocks from our Public Equity and Asset Management Firms screener that appear positively exposed to the latest policy debate.

Wealthfront (WLTH)

Overview: Wealthfront is a digital wealth manager that uses in-house research to build portfolios of public equity, fixed income, mutual funds and ETFs for individuals, high net worth clients, charities and corporates, delivered through an automated platform from its California base.

Operations: Wealthfront generates about US$371 million from asset management activities, all sourced from clients in the United States.

Market Cap: US$1.21b

Wealthfront sits at the intersection of rising US equity participation and changing tax policy, which matters when proposals target billionaire wealth while also promoting broader stock ownership. The business already serves clients who are active taxpayers, as highlighted by management’s comments on billions in tax payments flowing through its cash accounts, and is adding features like tax efficient custodial accounts for families. At the same time, the stock combines a US$1.21b market cap, analyst expectations for stronger earnings over time and a history of product expansion into areas like home lending and AI driven automation. However, it remains exposed to funding risk from relying entirely on external borrowing and to questions around rich executive pay while the company is still working toward sustainable profitability.

Wealthfront’s tax focused features, AI driven automation and US$1.21b size could be masking a far bigger story for long term equity participation, and the analyst forecasts for Wealthfront may reveal what the market is missing.

Netwealth Group (ASX:NWL)

Overview: Netwealth Group is an Australian wealth platform that lets investors and financial advisers manage superannuation, managed accounts, listed securities and other investments in one place, supported by tools for portfolio reporting, research and mobile access.

Operations: Netwealth Group generates about A$361.4 million from its platform operations, all from clients in Australia.

Market Cap: A$4.9b

Netwealth Group stands out for investors interested in how policy driven retail participation could shape the future of investing. It already focuses on advisers and individual investors using a single platform for superannuation and broader portfolios. This links to ideas such as a national public equity fund and wider share ownership. Some observers highlight expectations for earnings and revenue growth, supported by high return on equity and operating leverage. However, recent margin compression and a rich P/E multiple indicate that expectations are demanding. For investors watching Australia’s wealth market and new tax rules on large fortunes, a key question is whether Netwealth’s technology, adviser relationships and product breadth can justify those expectations over time while fee pressure and regulation continue to build.

Netwealth Group’s growth story and rich P/E are tightly linked, yet many investors have not fully unpacked what is driving that earnings profile or how it could evolve under new tax rules, so the analyst forecasts for Netwealth Group might surface a twist that changes how you see the stock

Liontrust Asset Management (LSE:LIO)

Overview: Liontrust Asset Management is a London based fund manager that runs equity, fixed income and multi asset funds for clients around the world, with a particular focus on active stock picking and sustainable investing.

Operations: Liontrust generates about £134.4 million in revenue from its investment management activities.

Market Cap: £196.6 million

Liontrust Asset Management gives you focused exposure to active fund management at a time when proposals for a national public equity fund and wider equity ownership could support long term growth in assets under management. The company couples a 5.64% dividend yield and established sustainable funds with clear pressure points, including recent earnings declines, fee compression and reliance on higher risk external funding. Analysts still expect earnings to grow faster than the UK market and see profit margins improving, but the P/E sits above sector averages and there has been recent insider selling. The key consideration is whether increased retail participation, operational efficiencies and stronger future returns can offset these risks and justify the current optimism around Liontrust.

Liontrust’s high yield, premium P/E and pressure on fees suggest the story is far from settled, and the 1 key reward and 2 important warning signs could show whether the current optimism is quietly resting on one crucial fault line.

The three stocks covered here are just a starting point. The full Public Equity and Asset Management Firms screener surfaces 43 more companies that pair scale with asset management and public equity exposure, and that could have equally compelling narratives around tax policy and broad equity ownership. Use Simply Wall St to identify, filter and analyze the specific catalysts, risk profiles and storylines that matter most so you can focus on the highest conviction opportunities in this space.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.