HNWI Investments : Strong Opportunity for Wealth Managers to Gain More HNWI Assets
Our findings on HNWI investment behaviors and preferences are derived from the Global HNW Insights Survey, the industry’s largest and most in-depth examination of high net worth individuals. Now in its fourth year, the report surveyed more than 5,200 HNWIs in 23 major markets across the five regions of North America, Latin America, Europe, Asia-Pacific, the Middle East and Africa.
HNWI trust and confidence in wealth management firms (and other stakeholders) increased significantly over the past 12 months. However, despite the favorable trust environment, only one-third of the record levels of HNWI total wealth is being managed by wealth managers, although there is significant potential for wealth managers to amass a greater share of HNWI investable assets.
Wealth managers have an opportunity to tap into HNWIs’ strong demand for investment advice, especially since nearly half of HNWIs favor a growth-oriented approach with less of a focus on liquid assets and more on alternative investments.
With respect to fees, more HNWIs are starting to favor a pay-for-performance fee model, creating a challenge for firms and wealth managers, but also offering a lever for firms who are able to profitably offer such a model.
Factors Encouraging HNWIs to Allocate More of their Total Financial Wealth to their Primary Wealth Management Provider
Note: Question asked: “Please indicate the extent to which the following factors would encourage you to allocate more of your total financial wealth to your primary wealth management provider?” Chart numbers and quoted percentages may not add up due to rounding
Source: Capgemini Financial Services Analysis, 2016; Global HNW Insights Survey 2016, Capgemini; World Wealth Report 2016, Capgemini