High net worth clients demanding more
Relationship management between high net worth individuals and their asset managers could be improved with technology and better skills, according to a recently released research report.
The report,High Net Worth Asset Management: a New Model?, is the second survey undertaken by the Andersen group and independent global research agency, Research International.
The 289 high net worth individuals and 270 asset managers surveyed revealed discrepancies between the demands of high net worth clients and how these demands were being met by asset managers.
“New demands from high net worth individuals, and the pressure to meet them amid uncertain global economic conditions, are heralding an end to the current structure of relationship management. In order to maximise revenues and reduce dissatisfaction, asset managers must work to align the commercial goals of the business with the investment objectives of their clients,” the report says.
Asset managers who are unable to resolve disparities risk missing out on revenue generating opportunities and the future growth of their business, the report says.
The report suggests technology, including the Internet, can be utilised and leveraged to develop better flows of communication.
The report also found Australian high net worth individuals are bigger risk takers than other high net individuals around the world, and are more frequent users of the Internet for their financial matters.
They also use a fewer number of asset managers than their overseas counterparts and are more discerning about their choice and usage of asset managers.
Andersen Private Wealth Management director Andrew Wright says the report findings pave the way for asset managers to better respond to high net worth individuals’ demands.
“The fundamental challenge for the current market is the recognition that whether service delivery is via ‘old style’ relationship managers or Internet based communication, high net worth asset management remains a high touch business,” he says.
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