Two thirds of the UK's high net worth individuals are interested in receiving advice on financial ma...
Two thirds of the UK's high net worth individuals are interested in receiving advice on financial matters not covered by typical asset managers, according to research by Arthur Andersen.
Some 67% of those polled said they were interested in advice on financial assets as well as financial planning for life events.
David Logan, an asset management partner at Arthur Andersen, said this is a market which has traditionally been dominated by private banks and brokers offering asset management services.
He said: "These clients still tend to go for a discretionary service rather than going via an IFA but the research showed there is increasing scope for intermediaries to compete for business in areas where clients are looking to diversify their investments."
Logan added there was increasing evidence of an expectation gap between high net worth clients and discretionary service providers.
Some 55% of UK high net worth individuals who were surveyed by Arthur Anderson, expressed a desire for long-term personal adviser relationships but only 43% of UK product providers surveyed offer such a service while many were unable to offer asset classes outside their traditional products.
More than 80% wanted more information on alternative investment vehicles in their own country with 76% interested in exploring global investment opportunities.
Logan said: "Marketing and managing new products is an expensive and time-consuming exercise for asset managers but they lack familiarity with non-traditional products such as private equity, venture capital, property and hedge funds."
More than half of UK investors are actively involved in the management of their financial assets rather than delegating entirely to their adviser, compared to 49% in the US.
However, the survey also showed that UK investors want more dialogue with asset managers on investment decisions. Philip said more people had become high net worth individuals with more than $1m in investable assets than in any other time in history. He said entrepreneurial activity and employee compensation were responsible for last year's 19% increase. He said: "More than a million people joined this elite club in 1999. There are 10 million people worldwide in the high net worth bracket and these control an asset pool in excess of $25.5 trillion."
Inherited wealth still represents the dominant form of the asset pool at 22% but Logan said most of the high net worths created over the past decade had earned their fortune through high-tech entrepreneurship, executive share incentives, entertainment and sport.
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected