The last couple of years have been momentous for wealthy investors and their Advisors. At this time last year, we were analyzing the dramatic effects of the financial crisis, which was quickly turning into a global economic downturn. World equity markets had lost a decade of gains, and volatility had reached record levels. HNWIs were re-allocating to safer investments and retreating to familiar markets close to home, and Financial Advisors were rallying to restore client trust and confidence.
A year later, many markets are recovering well and the broader economy, after contracting across much of the world in 2009, is showing distinct signs of recovery. The HNWI population itself has started growing again, and HNWI wealth is also recovering. But it is clear from HNWIs’ asset allocations that they are taking a cautious approach to investing and risk-taking. Moreover, it seems the lessons learned from the crisis have changed the way HNW clients will think about investing for the foreseeable future. Clients are now much more involved in managing their investment choices, asking for more specialized advice, demanding full product disclosure and transparency. They are more educated about investing and about their own
needs. They now understand that when weighing potential returns, they must weigh the risks more thoroughly.
This year’s World Wealth Report (WWR) looks at how wealth-management firms are adapting to behavior-driven investing by clients, and are re-evaluating their advisory processes, risk models and service offerings to cater effectively to HNW clients in this new paradigm.
It is a pleasure to provide you with our findings, and we hope you find continued value in the WWR’s insights.
Sallie Krawcheck
President, Global Wealth
& Investment Management
Bank of America
Bertrand Lavayssière
Managing Director
Global Financial Services
Capgemini
Click Here To View Report
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