The research – perhaps unsurprisingly – suggests that in tougher financial conditions, wealthy individuals need guidance.
A survey of 3,000 affluent and high net worth individuals found
perhaps unsurprisingly that they turn more to financial advice in
increasingly challenging economic conditions.
According to a study by Swiss core banking software and
technology firm Avaloq,
more than half (53 per cent) of investors consult industry
professionals when making investment decisions, a figure that has
risen by 9 percentage points since 2022.
“Investors’ motivations have changed and their desire for income
as well as their increased appetite for risk are reflections of
the new realities of risk and return profiles in this volatile
economic environment,” Martin Greweldinger, co/chief executive of
Avaloq surveyed individuals in February and March 2023, taking
views from investors aged 18 and above across six European and
Asian markets: Germany, Switzerland, the UK, Hong Kong, Japan,
and Singapore (500 respondents per market). Some 57 per cent of
respondents were mass-affluent (with investable assets of
$250,000 to $1 million) while 37 per cent fell within the HNW
segment (with investable assets of $1 million to $50 million) and
6 per cent within the ultra-HNW bracket (with investable assets
above $50 million).
Avaloq said the research shows that in today’s high inflation and
high interest rate environment, income is investors’ top
Moreover, investors are increasingly relying on industry
professionals such as financial advisors when making investment
Professionals are the go-to source for investment advice,
followed by news articles (cited by 46 per cent, up 3 percentage
points since 2022). Meanwhile, investors are less likely to look
to their friends and family when deciding how and what to invest
in, with just a third (33 per cent) relying on them for advice
(compared to 35 per cent in 2022).
The switch likely reflects the need for professional expertise,
following a year of financial uncertainty, geopolitical tensions,
energy crises and supply chain disruptions. Against this
backdrop, investors cited additional income (50 per cent) and
retirement planning (43 per cent) as the top factors driving them
In a further sign that investor preferences are changing and
demand for professional advice will increase, Avaloq’s survey
revealed that a greater percentage of investors would describe
their investment approach as aggressive (27 per cent), up from 20
per cent in 2022.
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