What You Need to Know
- 87% of ultra-wealthy participants considered tangible assets part of their wealth.
- Only 53% of financial advisors saw these assets in the same way.
- A vast majority of respondents said they would prioritize insurance coverage and service over price.
Chubb, a commercial insurer, and The Wharton School of the University of Pennsylvania put out a report this week that looks at differences in how wealth managers and ultra-wealthy individuals evaluate assets and coordinate risk management activities.
The study, which included a survey of 100 investors with a minimum of $30 million in wealth, family office members and key financial decision makers, showed that these differences are particularly apparent with tangible assets like property, art collections and other valuables.
The survey found that 87% of ultra-wealthy participants considered tangible assets part of their wealth, while only 53% of financial advisors saw these assets in the same way.
“In our sample, most UHNW respondents view their wealth holistically, meaning that they think of multiple factors, such as tangible non-financial assets, operating businesses assets, human capital and liquid financial assets, as representing a more complete picture of their family’s total wealth,” Christopher Geczy, the Wharton finance faculty member overseeing the research, said in a statement.
“Understandably, many wealth managers may focus largely or exclusively on the risks and returns of stocks, bonds, private equity and other financial investments, but the research shows that UHNW asset owners want their wealth managers to consider tangible assets to be a part of their investment plans.”