Wealth in Brazil: HNW Investors; Understanding HNW investors and wealth management strategies.

Wealth in Brazil: HNW Investors; Understanding HNW investors and wealth management strategies.

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Executive Summary

The majority of wealth in Brazil originates from the construction and finance industries, and can be attributed to a range of sources. These investors are confident enough to deal with their financial affairs, but to gain access to sophisticated products and achieve better returns they opt for management services. Investment portfolios are built around cash and bonds, but it is expected that alternative holdings will continue to gain importance.

Key Findings

55.3% of Brazilian HNW wealth can be attributed to earned income or first-generation entrepreneurship.

As Brazil offers a wide range of sectors in which to invest, it is expected that HNW expats will continue to allocate a portion of their wealth to opportunities in Brazil.

Access to more sophisticated investment products is the number one reason Brazilian HNW clients opt to have their wealth professionally managed, while 22.4% expect better returns though advisors.

A noteworthy 22% of HNW client portfolios are allocated into alternatives. Demand is expected to increase along with the investment opportunities offered by multimercados.

Among planning services, financial planning shows the strongest demand. It is expected that inheritance and pension planning will experience strong demand in the next two years, and as such wealth managers will do well to provide a complete suite of services.


Verdict Financial's "Wealth in Brazil: HNW Investors" report analyzes the investing preferences and portfolio allocation of Brazilian HNW investors. The report is based on our proprietary Global Wealth Managers Survey.

Specifically the report:

Profiles the average Brazilian HNW investor in terms of their demographics and analyzes the expat opportunity in Brazil.

Analyzes which wealth management mandates are preferred among Brazilian HNW investors and how demand will develop looking forward.

Examines the allocation of Brazilian HNW investors' portfolios into different asset classes and how the allocation is expected to develop in the future.

Analyzes product and service demand among Brazilian HNW investors.

Reasons To Buy

Develop and enhance your client targeting strategies using our data on HNW profiles and sources of wealth.

Give your marketing strategies the edge required and capture new clients using insights from our data on HNW investors' drivers for seeking investment advice vs. self-directing.

Tailor your investment product portfolio to match current and future demand for different asset classes among HNW individuals.

Develop your service proposition to match the service and product demand expressed by Brazilian HNW investors and react proactively to the forecasted change in demand.

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Ken Research
Ankur Gupta, Head Marketing & Communications



Brazilian HNW clients take a proactive approach to wealth management

Key findings

Critical success factors


The main source of Brazilian HNW wealth is earned income

A diversified market commands a focus on a range of wealth sources

A diversified market commands a focus on a range of wealth sources

Brazilian HNW managers should target expats within Europe

Expats account for 4.3% of the Brazilian HNW population

The largest proportion of HNW expats originate from the US and Mexico

Brazil to host investor meetings to widen private investment opportunities

HNW expats invest in Brazil for better opportunities and greater control over investments


Brazilian HNW individuals want to be involved in managing their wealth

Access to exclusive products motivates HNW investors to seek out wealth management services

Nearly half of Brazil's HNW wealth is held in advisory mandates

Wealth managers experience the greatest demand for execution-only mandates

Demand for discretionary asset management is expected to increase the most

70.9% of wealth managers expect demand for discretionary asset management to increase

Brazilian HNW clients are confident in taking the reins on wealth management


The majority of Brazilian HNW investors expect demand to increase for alternative investments

Cash and bonds dominate HNW portfolios

Brazilian HNW individuals hold 17% of their wealth in equities

27% of HNW client portfolios are allocated into bond investments

Cash is the most common investment option for Brazilian HNW investors

A minimal proportion of Brazilian HNW client portfolios is invested in property

Demand for alternative investments is expected to grow

Commodity investments are kept to a minimum, but are expected to grow in demand


Financial planning services are essential for Brazilian wealth managers

Wealth managers are most likely to experience strong demand for financial planning

Demand for planning services is expected to increase in the next two years

Investment property advice is more prevalent among Brazilian HNW investors

Tax planning is not considered to be an in-demand service among Brazilian clients

Tax planning services will become a focal point of wealth management services


Abbreviations and acronyms



Liquid assets


Verdict Financial's 2015 Global Wealth Managers Survey

Verdict Financial's 2014 Global Wealth Managers Survey


Further reading

About Verdict Financial


Figure 1: HNW wealth can be attributed to a range of sources

Figure 2: More than 20% of HNW clients generate wealth through construction

Figure 3: More than half of HNW expat clients are classified as short- to medium-term residents

Figure 4: Nubank secured USD 53m in credit lines from Goldman Sachs

Figure 5: Nearly half of Brazil's HNW expat population are from Mexico or the US

Figure 6: Better opportunities and fear of insufficient control motivate expat clients to invest in Brazil

Figure 7: HNW clients expect access to exclusive investment options and better returns by using professional wealth management services

Figure 8: 28.6% of Brazilian HNW clients invest in execution-only mandates

Figure 9: Advisory asset management experiences very weak demand from HNW clients

Figure 10: Discretionary mandates will see the largest demand increase over the next two years

Figure 11: Self-confidence and lack of trust lead HNW clients to self-direct their portfolios

Figure 12: Almost one third of HNW client portfolios are allocated into cash investments

Figure 13: The majority of HNW investors prefer equity funds over direct holdings

Figure 14: Risk aversion is the main driver for HNW clients investing in equity funds

Figure 15: An in-depth look at bond holdings shows that 47.3% are kept in direct government bonds

Figure 16: Four times as many wealth managers expect bond demand to increase than decrease in the future

Figure 17: The vast majority of Brazil's HNW cash holdings are allocated to money market funds or local currency deposits

Figure 18: Risk aversion is the main driver for direct holdings and funds of cash

Figure 19: Property holdings are nearly equally allocated among direct property, ETPs, and funds

Figure 20: 48% of wealth managers expect demand for property to increase

Figure 21: Hedge funds are the main investment for alternatives

Figure 22: Almost 70% of wealth managers expect demand for alternatives to increase

Figure 23: BTG Pactual offers an international hedge fund to HNW investors

Figure 24: ETPs and commodity funds account for the largest proportions of commodity investments

Figure 25: The main driver for commodity funds is risk aversion

Figure 26: Inheritance planning experiences the least demand from Brazilian HNW clients

Figure 27: Notable increases in demand across all planning services are expected

Figure 28: 86.3% of wealth managers experience very weak demand for tax planning services

Figure 29: PKF offers tax advice and services for clients around the world

Figure 30: Over the next two years demand for tax planning will increase significantly

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Alternative investments, commodities, equities, entrepreneurs, , hedge funds, tax planning, wealth management, Brazil, investments, property, portfolio allocation, HNW, expats, discretionary asset management, self-directed investors

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