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What UHNWs Want From WEALTH MANAGERS?

The overcrowded world of information has been a real trouble for UHNWs; it troubles everyone to differentiate between ‘usable’ info and ‘trash’. In current data-overpowered market, wealth management firms have taken the approach of information explosion rather than preferring “quality over quantity”

The Ultra high net worth – UHNW with over $10 million in investable assets, are very vulnerable to risk. Hence, they seek detailed insights about their investments, more portfolio overviews and demonstration of updated technologies. Advisors need to fulfil their requirements and also show strong suitability to the UHNW’s business.

Advisors need to deliver information sought by the UHNWs more frequently while discussing the fact that most information present in the market may be hindered or damaged. Wealth Managers must maintain a close relation with UHNW client, by the means of personal communication.

Quality Information Is Critical for Credibility

Clients seek wealth managers who can live up to their trust, and to evaluate them they focus on interacting every day. The interaction is only to evaluate if the advisor fits in right.

UHNW clients wish to understand everything about their investments and returns. The less wealthy clients focus themselves on the personal experiences shared with the wealth manager or firm’s employee, while the UHNW clients depend sharply on the content. And in exact terms, investment information is observed as more assuring as credibility than individual relationships with wealth managers or public reputation. Hence, quality content is being prioritized by the ultra-audience.

Wealth Manager Presenting UHNWs with credible information

Significance of quality information is very basic to the UHNW clients. Most of them don’t prefer to work with a manager who doesn’t own the ability to communicate the information efficiently. Primary financial manager’s quality information and the medium to transfer the piece to the required clients. And the way the information gets delivered will be considered by the client to decide about the particular wealth manager.

Risk Aversion on the Rise

UHNW investors deem to expand more, they wish to rise further up with their investments. Making them the most profitable and sought after client segment in financial terms. However, with great assets comes great averse risk conditions. A lots of UHNW claim that the safety of the principal has become a concern, while the others at the lower end of the wealth scale describe it to be extremely risky.

In these situations of extreme risks, the UHNWs have started to expect immensely from their respective wealth managers. Their growing concern with the market has panicked them in demanding guarantee of investment security from the managers.

Diversify UHNWs' investment and avert risks

The clients demand evidence that recommendations match their risk profile, 84% site that the advisors need to have the proper technology to manage wealth securely. While some want the management firms to demonstrate the process of investment. UHNWs demand proof of commitment of fundamental principles of advisory interactions before trusting any wealth management firm with their portfolio.

Back to First Principles

The risk afflicted upon the market, the concern in the minds of HNWs have grown. 63% of the UHNW clients have started expecting their risk profile to be evaluated monthly. While 42% of them expect it to be evaluated weekly. 45% of the HNW clients expect their risk profiles to be checked on a monthly basis. Making this segment nearly as demanding as the millennial generation (46%)

Nonetheless, the wealth managers and advisors don’t seem considerate about the clients concern. As the managers pertain to offer information to their clients on a long time cycle. Which basically keep the anxiety alive.

Most of the clients receive progress updates on goals completed monthly or weekly. Depends on the pace of information exchange to meet evolving needs. Under the uncertain risk induced markets, the information on investment ideas and portfolio securities has to be provided at a faster frequency.

Key Takeaways

Wealth managers need to provide a clear picture of UHNWs portfolio composition and performance. They should benefit themselves out of this opportunity by demonstrating their strong investment strategies and use of advanced technology.

  • UHNWs name high-quality insights as the greatest assurance of their wealth manager’s capability.
  • TO avoid invoking “information fatigue”, wealth managers must differentiate between ‘usable info’ and ‘trash’.
  • Information about their risk profiles resonates with UHNWs, who tend to be less tolerant of risk in their portfolios.
  • If wealth managers even want to be considered by the UHNW individuals then they need to demonstrate quality information, communication tools and technology as standard.

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