Advisers losing traction with HNWs

Financial advisers need to more closely align their offering with the needs of high net worths, (HNWs) according to the latest research and analysis from Investment Trends.

The Investment Trends 2017 High Net Worth (HNW) Investor Report has not only revealed the degree to which the numbers of people falling into the category have risen in Australia for the first time since 2014, it has also pointed the manner in which the numbers of high net worths using advisers has actually declined.

“The use of financial advisers among HNW investors fell to a five year low, with 68 per cent of HNWs relying on the expertise of some form of financial adviser in 2017, down from a high of 74 per cent in 2013,” it said.

Related News:

However the Investment Trends analysis said that despite this decline there was a significant opportunity for advice providers to expand their footprint in the HNW market given that over half of HNWs (53 per cent) said they had unmet advice needs.

“Right now, HNW investors have a range of unmet advice needs that most often centre around investment strategy and retirement,” Investment Trends Senior Analyst, King Loong Choi said.

“HNWs themselves understand that a single adviser may not necessarily possess the expertise to meet all their advice needs, with only 31 per cent believing it is important that one individual provides an all-encompassing service,” he said. “Advice providers could therefore adopt and promote a team-based approach to more effectively service the HNW market.

In the tenth year of producing the report, Investment Trends found there are now 435,000 investors with over $1 million in investable assets outside of their own home, business and non-SMSF super with the figure having increased by 10,000 (two per cent) over the last 12 months following two consecutive years of decline.

Recommended for you



You don't need a planner to help you spend a million dollars on cruises over a few years, in order to get the full aged pension. Unlike NZ, the process set in motion here by Scott Morrison & the Liberals, is where the government now subsides retirees not to save, so little wonder.

I deal with a few HNW, they all want the same thing, transperant costs , value for money, and thier assets where they will provide growth and income. Some need more growth others need more income so therein is the planning aspect, looking at different investments and vehicles and ownership for one part of it for example. I would never tell someone to spend money on cruises then get the aged pension, they are just planning to be poor. Much rather my clients have enough to keep them in or close to the lifestyle they are accustomed to, not tell them to go from champers to baked beans within a few years of retirement.

Add new comment