Table of Contents
OVERVIEW
- Catalyst
- Summary
- Methodology
EXECUTIVE SUMMARY
- Belgium and Holland are both reeling from the downturn due to their
internationalized economies
- HNWs are still willing to take on risk and are looking to profit in the
downturn
- Wealth managers in the Belgo-Dutch region believe their service quality is
good, but need to understand the demands of their clients better
BELGIUM' S WEALTH
- Belgium' s downturn is no worse than that in the rest of Europe
- The value of equities halved in 2008
- Interest rates have plummeted after growing steadily for four years
- Belgian investors have drastically altered their holdings allocations
- There has been an exodus from mutual funds
- Currency and deposits are not popular, but securities other than shares
increased noticeably
THE NETHERLAND' S WEALTH
- The Dutch economy has been hard hit
- The Dutch economy is largely reliant on exports and its financial
sector, both of which have been badly affected by the downturn
- As in Belgium, disposable income continued to rise in 2008, but the
household savings rate fell
- Dutch equities have suffered badly
- Dutch households are wary of falling equities and deposits remain a safe
haven
THE BELGO-DUTCH HNW INVESTOR
- Belgo-Dutch HNWs are loyal and have a high appetite for risk, but they are
not financially knowledgeable and are therefore confused by the current market
- Belgo-Dutch HNWs are defiant in the face of the downturn
- Wealth management service implication: educate your clients
- Belgo-Dutch HNWs are not particularly demanding when it comes to their
wealth management service
- Wealth management service implication: get close and understand your
clients' needs
- Innovative example from the US: Advisor Software has developed an
application which tailors investment solutions to clients' needs
- Belgo-Dutch HNW investors are relatively defensively positioned at present
but are starting to return to riskier asset classes
- Belgo-Dutch investors moved en masse into fixed income but are already
moving out and into equities
- Wealth management service implication: be proactive and innovative with
investment suggestions
- Over the next two years real estate and alternative investments will
become more important in HNWs' portfolios
- Wealth management service implication: help position investors for a
recovery in property
- Corporate bonds will be hardest hit over the next two years, due to fear
and opacity
- Four main elements drive Belgo-Dutch HNWs' demands
- HNWs want to profit in the downturn
- HNWs are currently demanding more advisory and execution-only services
- HNWs want to hear how long the crisis will last
- HNWs want to be provided with auxiliary services
- Wealth management service implication: accept clients' needs at the
present time in order to build a relationship for the future
- Demand will remain largely unchanged over the next two years
- Wealth management implication: offer auxiliary services as a way in
which to develop relationships and increase share of wallet
- Innovative example from the UK: AWD Chase de Vere has launched Advanced
Wealth Management
- Belgo-Dutch HNWs are influenced by stable, innovative and proactive
wealth managers
- Wealth management service implication: look to capitalize on changes to
market players' reputations through innovative marketing campaigns and
investment opportunities
- Innovative example from South Africa and Guernsey: FirstRand is
re-launching and honing its target audience
- Data
THE BELGO-DUTCH WEALTH MANAGER' S VIEW
- Belgo-Dutch wealth managers must work on enhancing core strengths such as
their financial stability
- Wealth managers' strengths are not aligned with HNWs' greatest needs
- Wealth managers believe they should make their service more personal and
emphasize financial stability to increase share of wallet
- Being proactive and accurate are the major ways to retain HNW investors
- Belgo-Dutch wealth managers regularly contact their clients
- HNWs most want to discuss current and future investment opportunities
with their wealth managers
- There are few common areas where wealth managers will be focusing
resource in two years' time, but direct equity will be important
APPENDIX
- Additional survey questions on HNW motivations
- The drivers of growth in the wealthy population
- Income growth (combined with inflation, changes in GDP by sector,
household savings rates and debt levels)
- Investment returns (market capitalization, interest rates and bond
yields)
- The following measures are not drivers of wealthy population growth in
themselves
- Market capitalization
- GDP
- The following measures are not drivers of wealthy population growth except
under very restricted circumstances
- Primary residence value growth
- Inheritance
- Methodology
- Wealth Management Market Leaders Survey 2009
- Global Wealth Model
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
TABLES
- Table: HNW attributes on a scale of 1 to 4 (1 = very low, 2 = somewhat
low, 3 = somewhat high, 4 = very high)
- Table: HNW attributes on a scale of 1 to 4 (1 = very low, 2 = somewhat
low, 3 = somewhat high, 4 = very high)
- Table: What proportion of your HNWs' portfolios is allocated to the
following five asset classes?
- Table: HNWs' portfolio allocation now versus in two years' time
- Table: What are HNWs demanding today?
- Table: In two years' time, how much demand do you expect from HNWs for the
following product areas?
- Table: What do you find most influences the provider selection of HNWs?
- Table: HNW motivations when it comes to investment decisions
- Table: HNW motivations when it comes to investment decisions
- Table: HNW motivations when it comes to investment decisions
- Table: HNW motivations when it comes to investment decisions
- Table: What are your company' s greatest strengths
- Table: What is the most effective means of increasing share of wallet
today?
- Table: What is the best way to retain clients today?
- Table: On average, how often do your relationship managers speak by phone
to each HNW client?
- Table: On average, how often do your relationship managers speak in person
to each HNW client?
- Table: When speaking with clients, what do they most want to talk about
today?
- Table: What product areas will your wealth management service focus most
resources on in the next two years?
FIGURES
- Figure: High wage growth leads disposable income higher but household
savings rates fall as the economic environment worsens
- Figure: The Euronext Brussels has almost halved in value, but this loss is
less than that of the total European stock market index
- Figure: Interest rates are falling drastically after increasing constantly
for four years
- Figure: Belgian investors are increasing their holdings in currency and
deposits only slightly, and are avoiding mutual funds altogether
- Figure: Personal disposable income continues to grow but household savings
rates decline
- Figure: The Euronext Amsterdam lost half of its value in 2008
- Figure: Deposits grow, while equities and mutual funds decline
substantially
- Figure: HNW investors in Belgo-Dutch have a higher risk appetite than the
average European HNW investor
- Figure: Belgo-Dutch HNWs are very loyal to their wealth managers
- Figure: The majority of HNW wealth in Belgo-Dutch is invested in the
' fixed Income' asset category, with this accounting for 29% of all investments
- Figure: In two years' time the majority of HNW wealth in the Belgo-Dutch
region will be invested in the ' equities' asset category with this accounting
for 26% of all investments
- Figure: There will be a large shift out of corporate bonds over the next
two years
- Figure: In the Belgo-Dutch region, HNW investors' greatest demand is for a
view about how long the current crisis will last
- Figure: In two years' time, the greatest demand amongst HNW investors in
the Belgo-Dutch region will be for direct equity investment, with 89% of HNW
investors demanding this category of product
- Figure: HNW investors in the Belgo-Dutch region are most influenced by the
financial stability of the company in their choice of wealth manager
- Figure: The greatest strength of wealth managers in the Belgo-Dutch region
is their personal relationships with clients
- Figure: The best way for wealth managers in the Belgo-Dutch region to
increase share of wallet is to target relationship managers on cross-selling
products
- Figure: The best way for wealth managers in the Belgo-Dutch region to
retain HNW investors is to not make errors
- Figure: In the Belgo-Dutch region wealth management relationship managers
speak to clients by phone approximately once a week
- Figure: In the wealth management relationship managers speak to clients in
person approximately once a quarter
- Figure: The majority of clients in Belgo-Dutch want to speak to their
wealth manager about views on what the future holds
- Figure: Wealth managers in the Belgo-Dutch region will be focusing most of
their resources on direct equity investment in two years' time
|
Related Report
|
View Cart
