Looking at what’s most important to High Net Worth investors ($2MM+ of investable assets) regarding their financial service provider experience, we find some “relaxing” from prior year results. Service dimension importance scores witnessing notable declines included “wide variety of products,” “friends/family having a positive experience,” “internet account access” and being a “well-known leader.”
It’s easy to make a case for a feeling better sentiment here given that the HNW possess the largest improvement in financial security attitudes relative to other wealth segments. Nearly one in two HNW investors indicated “no anxiety regarding their financial situation now and as they look into the future,” up from 31% in 2010. In contrast, national levels tell a well known story with only a mere 13% agreement and no significant improvement since 2010.
On the surface, the HNW should now be an easier client to engage and service. However, that feeling better sentiment regarding their own situation has not yet resulted in reduced concerns about being ripped off by financial professionals. While net agreement with the fear of getting ripped off by financial professionals remains significant for investors overall (more than one in two nationally), net agreement with this attitude among the HNW is notable at 39% and has not shown any evidence of decline post crisis.
This broad attitude towards financial professionals has many implications for both established advice providers and asset managers to consider in how they approach this highly desired client. For actively managed investment product providers, it suggests a sizable segment among the HNW (and by extension the advisors that service them) who will require additional support to allay concerns that could be preventing higher fee investment product consideration.