What UHNW families really want from their advisers
May 4, 2016 7:36 PM
Planners are the single biggest influence on financial decision making for UHNW clients and their family members, a recent industry study says.
Advisers play a surprisingly significant role for ultrahigh-net-worth families, according to Family Decision-Making, a recent study made by Morgan Stanley Private Wealth Management and Campden Research.
In fact, the study found that families place more importance on what their advisers say than their own family members. Ultrawealthy families rely on advisers for both tactical and strategic investment decisions, and other portfolio needs.
Click on the images above to learn which factors are shaping family decision-making, and how you can better serve the needs of your ultrahigh-net-worth clients.
In fact, the study found that families place more importance on what their advisers say than their own family members. Ultrawealthy families rely on advisers for both tactical and strategic investment decisions, and other portfolio needs.
Click on the images above to learn which factors are shaping family decision-making, and how you can better serve the needs of your ultrahigh-net-worth clients.
Who does your client turn to most for guidance on their finances?
UHNW clients and their relatives who put a premium on good, professional investment advice, view financial planners as key wealth influencers.
The preferred choice
Clients may turn to a family committee for many of their big decisions, but they turn to financial planners when dividing up assets to heirs of different generations.
Financial planners are key players in helping with investment decisions.
Data shows strong use of the investment committee structure. However, use of an adviser is more prevalent for investment decision-making.
An opportunity for you to step up and help your client's investing needs.
A majority of clients and their relatives find it difficult to make decisions about their investments, providing more value to the adviser who supplies the guidance they need.
Difficult relatives are a road-block to family wealth decisions.
A controlling relative can lead to a lack of consensus and missed investment opportunities.
Your clients and their relatives may not care that much about these planning documents.
A client who does use the IPS may find it useful for structuring investment decisions and defining goals, adding more to your value proposition.
The big role you play providing investment advice to your client and their family members.
Advisers entrusted with more than half the wealth of clients and their relatives are called on for tactical investment decisions, as well as guidance and recommendations for strategic decisions.
Your client and their relatives may have different ways of determining the financial success of their portfolios.
Families that choose to benchmark their performance against other similar types of investors often find it difficult to find an adequate instrument and turn to other ways, including the use of absolute returns.
