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October 18, 2013 at 12:31 PM
Most asset managers rank providers to high net worth investors as an attractive opportunity due to the vehicles investors use and their sophistication, according to a new report.
Cerulli Associates discloses this finding in the October 2013 issue of the “Cerulli Edge: U.S. Asset Management Edition.” The report surveys bank trust officers and their high net worth clients, wholesalers targeting high net worth advisors and young investors’ use of direct providers and financial advisors.
The research reveals that 53 percent of asset managers rank “vehicles used” as their top reason for working with high net worth investors. Also flagged by significant percentages of assets managers as reasons for which the HNW market is more desirable are:
- Sophistication — 47 percent;
- Customization — 41 percent;
- Holding period — 39 percent;
- Revenue-sharing — 39 percent;
- Length of sales cycle — 39 percent;
- Pricing flexibility — 38 percent; and
- Sales resources — 28 percent.
“These are theoretically more experienced and knowledgeable investors, requiring asset managers to approach them with a more intricate product set,” the report states. “In addition, the sophistication of these investors should mean more rational decisions in times of poor performance and market turmoil.
