Global High Net Worth Investors - HNW Investment Market Drivers

Alternative Investment Holdings Diverting Interest of Global HNW Investors : Ken Research

High Net Worth Individuals across the globe are showing greater interest in alternative investment holding options driven by the desire to diversify.

Real estate investments are driven by HNW investors’ desire to be able to rely on rental income

Ken Research has announced latest publication on, HNW Asset Allocation Trends’, which offers a detailed insight into the trends prevailing in the global wealth management landscape. Specifically, the publication examines drivers behind the investment choices expected to be made by the HNWs over the next 12 months. The report also interprets macroeconomic, demographic and attitudinal trends that are shaping HNW investment behavior. One of the distinct features of this report is an interactive online dashboard to enable users to select and view the data of their choice. The report findings are based upon 2015 Global Wealth Managers Survey by Verdict Financials conducted across 20 key HNW markets including the UK, the US and Australia.

The worldwide HNW investment preferences are undergoing a shift in 2016. It is difficult to point out any single factor which is driving this shift. Instead, the investment choices of HNWs are driven by an interplay of factors such as macro/micro economic forces, investor attitudes and risk preferences. As of 2016, the trend has shifted towards relocation of assets towards investment holdings worldwide. In addition, there is also a trend of cheap buying opportunities in the equity space.

Alternative investment holding options have gained popularity because they offer increased diversification, thereby enhancing profitability and lowering the risks. The popularity of alternative investments has come at the expense of bonds. HNW investors are typically interested in either investing in direct equity, local currency products, equity funds or direct properties. Even though direct holdings form a major part of equities, the ETP’s are also gaining immense popularity. For instance, commodity ETP’s have now taken over mutual funds in both value and volume of overall output.

The investment patterns are also driven by regional factors such as the economy of the country the HNWs belong to. For example, in terms of asset allocation preferences, HNWs in Africa and the Middle East are heavily skewed towards equities. On the contrary, the typical HNW portfolio in the Asia-Pacific region are skewed towards real estate investment. However, in resource-rich countries of the West, the drop in commodity prices forced the HNWs to look for alternative investment holding options. Particularly in North America, the demand for alternatives is very high.

With the increasing number capital appreciation opportunities available, investors are forecasted to channelize a larger part of their wealth into equities. The trend is particularly prominent in Europe, where the investors are hopeful that loose monetary conditions might finally result in stimulation of equity markets. Additionally, in the fixed income arena, HNW investors are moving beyond high-yield bonds as the concerns regarding their volatility are rising. In fact, even wealth managers are promoting bond funds over other bond holdings in general because of the diversification benefits they offer.

High Net Worth individuals across the globe are showing a change in attitude with a greater interest in alternative investment options that offer better profits at lower risks. Following are some upcoming trends that will show up over the forecast period-:

Real estate will remain the core of all HNW investment. While data has showed that there is some decline in HNWs interest in real estate, overall the real estate market has reported steady output in terms of both value and volume.

Equity will gain preference over bonds. Research has revealed that HNW investors have moved beyond traditional hedges such as gold and other fixed income investment solutions towards equities.

Key Topics Covered in the Report:

The global landscape of HNW investments

Global drivers for HNW investment

Competitive landscape of the HNW investment industry

Detailed product environment in the HNW market

To know more on coverage, click on the link below:

https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/hnw-asset-allocation-trends/8401-93.html

Related Reports:

Self-Directed Investors: Implications for Wealth Managers; Understanding how self-directed investment affects the wealth management industry

 

Emergent FinTech: Defining the Potential and Opportunities

Contact:

Ken Research

Ankur Gupta, Head Marketing & Communications

query@kenresearch.com

+91-124-4230204

Tags: , , , , , , , , , , , , , , , ,

scroll to top