Direct vs Fund Investments: HNW Preferences

Published: May 2016
No. of Pages: 38
    ReportsandReports

Summary

Globally, 44% of HNW wealth is held via funds as opposed to directly. However, there are significant regional differences when it comes to investment preferences. For example, HNW investors in the US, and to a lesser extent in Western Europe, are significantly more likely to invest in funds than their peers in Central and Eastern Europe, Asia Pacific, and the Middle East. Furthermore, while equity funds prevail across the globe, they are particularly prominent in the West. There are also strong differences across asset classes when it comes to the drivers to invest in funds. While asset diversification benefits feature strongly across all asset classes, lack of time to research direct equity investments is a key driver for fund holdings in the equity space, while an expectation of better returns motivates HNW investors to opt for alternative investment funds as opposed to direct holdings.

Key Findings

  • Diversification benefits are the number one driver why HNW investors opt for funds as opposed to direct holdings, and in light of ongoing market turbulences, wealth managers would do well to provide a strong range of funds that offer not only exposure to different industries, but also geographies and asset classes.
  • No longer the reserve of institutional or mass affluent investors, exchange-traded funds (ETFs) form an increasingly large part of HNW investors' portfolios, and being able to offer a wide range of such funds next to more sophisticated products is becoming more and more important.
  • A large chunk of HNW wealth is locked up in direct property; wealth managers would do well to convince their clients of the benefits of property funds so as to increase their fee income.
  • While HNW investors tend to be well-diversified across asset classes and geographies, industry diversification is equally important - something wealth managers should discuss with their clients.

Synopsis

This report draws on our 2015 Global Wealth Managers Survey to analyze HNW investment preferences across the globe. It breaks down HNW investors' fund portfolio by asset class and type of investment and contrasts fund holdings to direct holdings. It furthermore provides insight into why investors opt for funds as opposed to direct holdings.

Specifically the report:

  • Examines what proportion of HNW wealth is kept in funds as opposed to direct holdings, and how preferences differ across the globe.
  • Provides an understanding of when and why HNW investors prefer fund investments and when they prefer direct holdings.
  • Identifies the different drivers that determine HNW investment preferences in the fund space.
  • Analyzes how fund holding preferences differ across asset classes.
  • Examines data in more detail through an online interactive dashboard that enables you to select and view the data of your choosing.

Reasons To Buy

  • Understand how to best promote funds to your HNW clients.
  • Review your service offering, and adjust it based on a detailed understanding of HNW investors' investment preferences.
  • Give your marketing strategies an edge and capture new clients using insights from our data on HNW drivers for investing in funds vs direct holdings.

Published By: Verdict
Product Code: Verdict156


Did you find what you are/were looking for ? If not, read below and browse through other relevant pages for similar market research reports OR get in touch with us through the form/contact info in your right navigation panel and well share relevant market report titles for you to explore.

Related Reports:

  • Global Automotive Usage-Based Insurance Market 2017-2021

    The global automotive UBI market is at a nascent stage and has low penetration in the overall automotive insurance market. The market is seeing an influx of new players owing to its growth potential and the emergence of smartphone app technology in a...

  • Consumer Payments Country Snapshot: Sweden 2016

    Summary Sweden has the potential to become the world's first cashless society. The use of cash is declining quickly in Sweden and over half of all bank branches no longer deal with cash-based transactions. Payment cards are widely held and widely us...

  • Maximizing Direct-to-Consumer Opportunities in Insurance

    Synopsis Timetric's 'Insight Report: Maximizing Direct-to-Consumer Opportunities in Insurance' analyzes the emerging importance of the direct-to-consumer (D2C) channel in the insurance industry. It provides: An overview of the D2C c...

  • Retail Banking Country Snapshot: Italy 2016

    Summary The market for financial products in Italy is less concentrated than in other countries. With the exception of Intesa Sanpaolo and UniCredit, few providers have a significant market share. Across all products, the branch is still the key acq...

  • 2017: Trends to Watch in Global Wealth Management

    Summary The wealth management industry has been undergoing transformation since the financial crisis, and 2017 will be another year marked with changes to business models and the way providers interact with clients. Many trends observed in 2016 will...

  • Global Loan Servicing Market 2017-2021

    Loan servicing software functions as a complete loan servicing system, transaction processing and banking, investor accounting, collection management system, credit reporting software, and electronic funds automated clearing house (ACH) payments and ...

  • The Cards and Payments Industry in the Philippines: Emerging Trends and Opportunities to 2021

    Synopsis Timetric's 'The Cards and Payments Industry in the Philippines: Emerging Trends and Opportunities to 2021' report provides detailed analysis of market trends in the Filipino cards and payments industry. It provides values and volumes for a ...

  • The Cards and Payments Industry in Sweden: Emerging Trends and Opportunities to 2021

    Synopsis Timetric's 'The Cards and Payments Industry in Sweden: Emerging Trends and Opportunities to 2021' report provides detailed analysis of market trends in the Swedish cards and payments industry. It provides values and volumes for a number of ...

  • The Impact of Money Laundering on Customer Due Diligence

    Synopsis The report focuses on recent developments as a result of AML regulation, and its effect on global regulation. It provides an overview of key drivers and vendors operating in financial risk management. It provides detailed analysis of th...

  • Consumer Payments Country Snapshot: China 2016

    Summary China represents a mature payment card market in Asia, with over 5 billion payment cards in issue. Despite a high card-per-customer ratio China is expected to see mild growth in both card numbers and the value of transactions, as mobile has ...


Why ReportsnReports.com?

  • 500,000 market research reports and growing.
  • Top Fortune 500 Organizations trust us for research data.
  • 24/7 support on call as well as emails.
  • Your Details are safe with us.
  • Free support for your research requirements.
  • Report Delivery: Email
  • Delivery Time:
    • Upto 24 hrs - working days
    • Upto 48 hrs max - weekends and public holidays

Research Support / Custom Research

If this business study does not have the data and information analysis you need, contact us with your research requirements. We explore available market research reports to map your needs and share report titles with you. Alternatively, we can also offer custom research that suits your budget and timelines. Share your information requirements here.
Connect With Us
Email: sales@reportsandreports.com Call : + 1 888 391 5441

Subscription Option

Using our subscription option, you get access to market research reports and industry data of Consumer Goods market as per your needs. Get the best of Consumer Goods research reports by utilizing your research budgets in an optimum way.

More about our Subscription option
Report Alerts

Get Email alerts about market research reports from industries and publishers of your interest: