• The HNW population in Netherlands is largely local and they are driven by factors such as complex portfolios and desire to earn better returns.
• The largest share of High Net Worth individuals in Netherlands is allocated to equities which is almost 44% of the typical HNW portfolio and bonds constitute of almost 31% of their portfolio.
Ken research has announced its latest publication on, ‘Wealth in the Netherlands: HNW Investors’, which offer detailed profiling of the average Dutch High Net Worth individuals in terms of their capacities as investors, their overall wealth and their average age. The publication also includes to data regarding the extent to which expats have become a part of the Netherland and the opportunities they can open for wealth advisors. The report analyzes various wealth management mandates that are preferred by Dutch HNW investors and how the industry will shape in the future? The report investigates the allocation of Dutch HNW investors’ portfolios into different asset classes and how the allocation is expected to have an impact on the future of the Dutch wealth advisory industry? The report also analyzes product and service demand among Dutch HNW investors.
The wealth management industry in Netherlands has developed considerably over the past few years. Similar to all other European Union countries, the Netherlands have a very stringent regulated wealth management industry in order to ensure that they are able to deliver high service quality, investor protection and transparency. Out of all the HNW individuals in the Netherlands, most of them are local entrepreneurs or family business owners. However, the largest wealth generators are people HNWs belonging to the financial services sector or the IT industries. Additionally, the typical Dutch HNW individuals are still inclined towards investing in traditional options such as equities. In fact, almost nearly half of the typical High Net Worth individuals’ portfolios are invested in equity. Out of the remaining half, one -third belongs to bonds.
Expats in Netherlands form a very small proportion of the Dutch HNWs i.e. approximately only 4.1%. This is where the new opportunity for wealth advisors in Netherlands is opening up. With boosting economy, expats from across the world have shown interest in investing in Netherland and need discrete management advice for the same. In addition, there is also a rise in the number of expats seeking non-managed advice from the wealth advisors. Currently, discretionary mandates account for 49.9% of portfolios, while 42.3% is invested in advisory mandates and 7.8% in execution-only mandates. Thus, the wealth advisors in the Netherlands have the opportunity to capitalize on the increasing expat interest. Moreover, the desire to receive better returns through advisors and investors’ highly complex portfolios are the leading reasons why Dutch HNW individuals are also seeking professional advice.
The Global Wealth Management Industry
Wealth Management has been amongst one of the most appealing and growing sectors within the financial services industry. Over the past one year, the wealth management industry has grown steadily. However, with rising expansion has come significant challenges that are adding to the costs of doing the business. Some of these challenges include the new regulatory framework, changing consumer preferences, digitization and very competitive landscape.
Some of the important factors that the wealth managers will have to keep in mind include:
• Be on a constant lookout for new opportunities
• Rethinking and reviewing the firm’s value proposition
• Aiming at transparency to retain clients
• Going as digital as possible
• Adjusting costs structure as per revenue realities
Key Topics Covered in the Report:
– Detailed profile of Netherlands’ HNW clients and their attitudes
– Critical success factors for wealth managers in the DUTCH
– Market landscape of Netherlands’ wealth management industry
– Expat opportunities for wealth advisors in the DUTCH
– DUTCH HNW’s investment style preferences
– Understanding the asset allocation trends among the DUTCH HNW investors
– DUTCH HNWs product and service demand
– The future outlook for Netherlands’ HNW industry
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Ankur Gupta, Head Marketing & Communications