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Adviser reputation high among HNWs

Adviser reputation high among HNWs

Slumping equity markets have driven a global fall in the wealth of high net-worth individuals, but those clients are still satisfied with the work of their financial advisers. 

According to The World Wealth Report 2019 published today (July 9) the global wealth of high net-worth individuals dropped by 3 per cent last year, ending a seven-year period of continuous growth. 

According to consulting firm Capgemini, which produced the report, this decrease was driven by poorly performing equity markets and slowing regional economies, particularly in the Asia-Pacific area, which resulted in a loss of $2trn (£1.6trn) on a global scale. 

Despite this the report, which collated responses from 2,500 high net-worth individuals across 19 wealth markets, suggested wealth management firms maintained good levels of customer trust in 2018. 

Anirban Bose, chief executive of Capgemini’s financial services, said: "While the volatile economic environment of 2018 led to HNWI wealth decline globally, wealth managers have been extremely successful in maintaining strong levels of client trust."

The report found high net-worths' trust and satisfaction in wealth management firms increased by 3 percentage points year-on-year over "already high levels". 

However, the report urged wealth firms to "proactively address rising expectations" of high net-worth clients, warning an "unsatisfactory service experience" was the biggest reason for these customers to switch firms in 2018.

Mr Bose said: "However, future success will depend on the agility of wealth management firms to evolve the client experience and find new ways to add value through more personalised services.

"Next-gen technology and closing expectation gaps will aid this, but the landscape is shifting so quickly that companies must not be afraid to overhaul their strategy and business models if needed."

According to Capgemini’s report, 85 per cent of high net-worth individuals want more digital interaction when accessing portfolio information and 62 per cent said they were comfortable with their primary wealth manager’s fees. 

rachel.addison@ft.com 

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