• With an increasing number of High Net worth (HNW) individuals in the UK, the wealth management industry is poised to grow.
• Entrepreneurs account for 50% of the UK HNW population, but earned income and inheritance are also importance sources of wealth
Ken research has announced its latest publication on, ‘Wealth in the UK: HNW Investors’, which offers detailed profiling of the average British High Net Worth individuals in terms of their capacity as investors, their overall wealth and their average age. The publication also includes data regarding the extent to which expats have become a part of the UK and the opportunities they can open for wealth advisors. The report analyzes various wealth management mandates that are preferred by British HNW investors and how the industry will shape up in the future. The report investigates the allocation of British HNW investors’ portfolios into different asset classes and how the allocation is expected to have an impact on the future of the UK’s wealth advisory industry. Moreover, the report also analyzes product and service demand among British HNW investors.
The wealth management industry in the UK has been flourishing for a long time and this is also reflected in the profile of the nation’s high net worth (HNW) individuals. A major proportion of the HNW population in the UK belongs to the financial services industry and has become highly sophisticated to deal with their financial matters. However, these individuals still prefer to seek advice from wealth management professionals in order to save on time and look for better profitability. This also reflects that wealth managers in UK have established a high reputation based on trust and loyalty. At present, there are three types of mandates available such as advisory services, non-managed services and discretion investment strategies.
In discretionary investment management services, the wealth manager is solely responsible for taking the decisions regarding the entire wealth possessed by the investors. The advisory services are where wealth managers assess the investors entire portfolio but do not have the power to make the choices. Non-managed services on the other hand are like self-service counters where wealth managers advise only on the matters client will request.
Almost 50% of High Net Worth individuals in the UK are entrepreneurs and other major contributors belong to either the inherited income class or salaried-income class. These consumers prefer the discretionary management services by wealth advisors because of their need to save on time. Also, there is a noticeable shift in the investment options HNWs in the UK are open to explore. Traditionally, all their wealth was being distributed between bonds and equities, however in recent times they have begun to look for other less conventional opportunities. Though not much changes are expected in terms of management strategies being used, wealth managers are expected to witness increased clientele also because of the changes in the Bank of England’s monetary policies. However, it is to be noted that the demand for execution-only platform is projected to be limited. Overall, the future outlook of wealth management industry in the UK looks positive in terms of growth, expansion and opening up of new opportunities.
Key Topics Covered in the Report:
– Detailed profile of UK HNW clients and their wealth management
– Critical success factors for wealth managers in the UK
– Market landscape of the UK wealth management industry
– Expat opportunities for wealth advisors in the UK
– UK HNW’s investment style preferences
– Understanding the asset allocation trends among the UK HNW investors
– UK HNWs product and service demand
– The future outlook for UK HNW industry
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Ankur Gupta, Head Marketing & Communications