Does your
wealth manager
measure up?

PERSPECTIVES FROM CFA INSTITUTE RESEARCH ON HIGH-NET-WORTH INVESTORS
YOU'VE WORKED HARD TO GROW YOUR WEALTH. BUT THIS IS JUST THE BEGINNING.

Markets continue to fluctuate. Technology continues to disrupt. The ambitions you have for your wealth never waver, but your wealth management needs change with the dynamic world we live in.

The CFA Institute has prepared Charterholders to measure up to your wealth management needs. The CFA Institute surveyed 900 investors with at least $1 million in investable assets to figure out how CFA Charterholders can help you harness your wealth to pursue the ambitions that drive you forward.

TIME IS MONEY, SO EXPERTISE IS VALUABLE CURRENCY.

Our most valuable asset is time. Many people are experts in something, but no one has the time to be an expert in everything. Given the incredible depth and breadth of knowledge required to build expertise in wealth management, it's no surprise that survey respondents list investment expertise as the most important trait they seek in a wealth manager.

High-net-worth investors face unique wealth management challenges, from nuanced tax planning and strategy to safeguarding the interests of future generations. With the right private wealth manager, wealthy investors know there can be simple, elegant solutions to even the most complex wealth management challenges. It takes an adviser with the right expertise and savviness to turn that financial complexity into clarity.

HIGH-NET-WORTH INVESTORS' DESIRED WEALTH MANAGER QUALITIES

Experience and savvy in investments

17.5%

Access/knowledge to a variety of products

12.0%

Good listening skills/ability to understand my needs

11.9%

Staying current on new strategies/anticipating future developments

10.1%

Responsiveness when issues emerge

9.1%

Proactivity in making suggestions and asking questions

7.6%

Patience in handling questions

6.3%

Effectiveness in teaching me what I need to know

6.0%

Flexibility to work in a system that works for me

5.6%

A holistic approach to wealth management

5.4%

Strong written/oral communication skills

4.3%

Creative thinker that can come up with novel approaches

4.3%

IN PURSUIT OF HOLISTIC PERFORMANCE.

No two people are the same. We all have different ambitions, goals, and dreams, so each investor has different wealth management demands — and a private wealth manager must be equipped with the skillset to meet them. High-net-worth investors expect holistic wealth management service; this is particularly true for younger high-net-worth investors (age 25-39), who are over twice as likely as their older counterparts to seek a holistic approach to wealth management.

But, "holistic" doesn't mean "generalist": the unique complexities of wealthy individuals often require bringing in the right specialists at the right time, and a sophisticated wealth manager ought to reflect these specialist views as they create and execute a robust investment strategy. No matter how complex the portfolio or nuanced the investment strategy, these investors demand that their wealth managers measure up to the ambitions they have for their wealth.


TRADITIONAL ASSETS AS RELEVANT AS EVER.

From cryptocurrencies to Silicon Valley's newest venture capital darling, new types of investment opportunities are everywhere. Though these newer investment vehicles are bold and buzzworthy, the CFA Institute survey reveals high-net-worth investors aren't yet sold, with the majority of respondents leaving cryptocurrencies completely out of future asset allocation plans. Rather, traditional assets remain the bedrock of the high-net-worth portfolio: a plurality (23%) still plan to invest more in stocks over the next five years, reflecting continued faith in public equities as a foundation of portfolios, particularly among investors age 25-49. Investors over age 50 were even more sour about the idea of putting money into unconventional vehicles in the next five years.

The story is the same for Environmental, Social, and Governance (ESG) investment vehicles. Despite the increasing popularity of incorporating ESG factors into investment analysis, such factors are not a "top priority" for high-net-worth investors, with only 11% of wealthy investors listing it as such.

TOP INVESTMENT PRIORITIES OF HIGH-NET-WORTH INVESTORS

Minimizing taxation

49%

Diversification across asset classes

47%

Diversification across industries

41%

Investing in instruments that are transparent/understandable

36%

Achievement of funding for specific goals

25%

Diversification across factors

23%

Diversification across countries
Important in Asset levels above $10M

15%

Socially responsible investing

11%

"Passion" investing (e.g. cars, art, wine, antiques)
Important in Asset levels above $10M

6%

Other

4%


TECHNOLOGY IS ENHANCING, NOT REPLACING.

For all the buzz about robo-advisers, high-net-worth investors don't want to lose their human advisers. Three quarters of high-net-worth investors surveyed said they prefer working with a human adviser for at least some of their wealth management services.

Rather than a replacement to human advisers, investors instead see technology as an enhancement to existing wealth management efforts. Interestingly, investors with $10 million in investable assets indicate particular interest in integrating technology compared to the rest of their high-net-worth counterparts.

A third of those investors prefer their adviser to integrate technology into their service, citing a desire to use technology to keep up with their wealth manager about their positions and performance. Younger investors (age 25-39) indicate an interest in "what if" analyses of their holdings and track progress towards their financial goals; they're twice as likely as older investors to demonstrate interest in this technology.

WHEREVER YOU ARE IN LIFE, YOU HAVE AN AMBITION FOR YOUR WEALTH.

What are your primary goals as you look to maintain and/or build your wealth?

50% of high-net-worth investors aged 40–49 said
Early retirement
as compared to survey average of 38%
28% of high-net-worth investors aged 25–39 said
New business opportunities/
acquiring companies

as compared to survey average of 7%


OUR TAKE:

One size definitely doesn't fit all. It's essential that your wealth manager have the breadth and depth of skills to align with your specific life goals and objectives, whatever they may be. Initial exploratory conversations with wealth managers should involve matching your goals against their capabilities.

A CFA CHARTERHOLDER MEASURES UP TO THE EXPERTISE YOU NEED.

You've worked hard to grow your wealth. Make sure you're working with a wealth manager who grows with you.

Armed with a deep foundation of knowledge about capital markets, investing, and wealth management from mastery of the CFA curriculum, CFA charterholders are ready to unlock wealth management opportunities that others might miss. By virtue of completing the CFA Program, CFA charterholders have already proven they can succeed where few do. They stand ready to apply that same commitment towards your goals.

Not all wealth managers
are up to the task.
Does yours measure up?
WARRANTIES & DISCLAIMERS

There are no warranties implied.
Any opinions expressed on this website are the opinions of WT Wealth Management and its associates only. Material listed on this website is neither an offer to buy or sell securities nor should it be interpreted as personal financial advice. You should always seek out the advice of a qualified investment professional before deciding to invest. Investing in stocks, bonds, mutual funds and ETF’s carry certain specific risks and part or all of your account value can be lost.

At WT Wealth Management we strongly suggest having a personal financial plan in place before making any investment decisions including understanding your personal risk tolerance and having clearly outlined investment objectives.

View Disclosure
WT Wealth Management is an SEC registered investment adviser, with in excess of $100 million in assets under management (AUM) with offices in Flagstaff, Scottsdale, Sedona and Tucson, AZ along with Jackson Hole, WY and Las Vegas, NV. WT Wealth Management is a manager of Separately Managed Accounts (SMAs). With SMAs, performance can vary widely from investor to investor as each portfolio is individually constructed and managed. Asset allocation weightings are determined based on a wide array of economic and market conditions the day the funds are invested. In an SMA, each investor may own individual Exchange Traded Funds (ETFs), individual equities or mutual funds. As the manager we have the freedom and flexibility to tailor the portfolio to address an individual investor's personal risk tolerance and investment objectives – thus making the account “separate” and distinct from all others we manage. An investment with WT Wealth Management is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Any opinions expressed are the opinions of WT Wealth Management and its associates only. Information offered is neither an offer to buy or sell securities nor should it be interpreted as personal financial advice. Always seek out the advice of a qualified investment professional before deciding to invest. Investing in stocks, bonds, mutual funds and ETFs carries certain specific risks and part or all of an account's value can be lost. In addition to the normal risks associated with investing, narrowly focused investments, investments in smaller companies, sector and/or thematic ETFs and investments in single countries typically exhibit higher volatility. International, Emerging Market and Frontier Market ETFs, mutual funds and individual securities may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles or from economic or political instability that other nations experience. Individual bonds, bond mutual funds and bond ETFs will typically decrease in value as interest rates rise. A portion of a municipal bond fund's income may be subject to federal or state income taxes or the alternative minimum tax. Capital gains (short and long-term), if any, are subject to capital gains tax. Diversification and asset allocation may not protect against market risk or investment losses. At WT Wealth Management, we strongly suggest having a personal financial plan in place before making any investment decisions including understanding personal risk tolerance, having clearly outlined investment objectives and a clearly defined investment time horizon. WT Wealth Management may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Individualized responses to persons that involve either the effecting of transactions in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption. WT Wealth Management's website is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of WT Wealth Management's website should not be construed by any consumer and/or prospective client as WT Wealth Management's solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the internet. Any subsequent, direct communication by WT Wealth Management with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of WT Wealth Management's current written disclosure statement discussing WT Wealth Management's registrations, business operations, services, and fees is available at the SEC's investment adviser public information website (www. adviserinfo.sec.gov) or from WT Wealth Management directly. WT Wealth Management does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to WT Wealth Management's web site or incorporated therein, and takes no responsibility therefor. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.

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