Connecting with high-net-worth investors in 2018

January 8, 2018 by Andy Penkalski

Advisors plan on how to attract and retain high-net-worth clients.

about the author:

Andy Penkalski

Marketing manager

Andy oversees all automated marketing initiatives. He is interested in always discovering new tools for brands and businesses to more effectively reach their audience and improve metrics for success within their own organization.

As both large and small firms continue to refine their strategies for 2018, many are likely focusing on how to grow additional AUM from their existing client base. If high-net-worth (HNW) individuals comprise a significant portion of your AUM, the returns provided by better supporting these clients will be far greater in the immediate future than the returns offered by younger high-earning clients who are likely still saddled with debt and indifference toward the client-advisor relationship. 

Similar to how the younger generation may appear to be a harder sell on the long-term benefits of planning through an advisor, HNW clients are rarely looking to bet on a single horse when it comes to investments and wealth management.

As the financial services landscape only grows more competitive, how can advisors ensure they are obtaining the largest share of wallet possible from their most affluent clients?

Provide a financial plan

According to the Capgemini 2017 World Wealth Report, which surveyed 2,500 HNW individuals across 19 major wealth markets, HNW investors view financial planning as the second most valuable service provided by the financial services industry – outranked only by investment management itself.

Not only is financial planning a clearly articulated demand from the HNW investor demographic, it is also a clear avenue to solidify your firm as the fulcrum for any investor’s diverse portfolio of investments. 

Align your services with HNW needs

The same Capgemini survey also offers a clearer picture of which asset types receive the closest focus from their investors. Not surprisingly, 91.5 percent of respondents indicated equities as the most important contributor to their portfolio performance.

As this portfolio structuring continues for HNW individuals, it is important that firms have confidence in their abilities to provide and advise on these commonplace HNW portfolio structures.

Plan for their legacy

Similar to the significance of financial planning in the HNW space, your clients cannot take their money with them after death. How can you ensure that your firm can retain its most valuable AUM segments across generations?

Providing estate planning for your HNW clients can ensure that your firm retains the future generations of investors after pockets of your AUM has passed down to the next generation of investors. Estate planning services also provides an appropriate avenue to potentially foster new relationships with younger advisors even before wealth transfer takes place.

To learn how Advicent technology can help your firm attract and retain HNW clients, click here.