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When working with financial advisors, wealthy clients seek
more risk management and better understanding of their emotional needs, according a
recent survey by Merrill Lynch Global Wealth Management and Capgemini.
The survey found that among high-net-worth individuals (at
least $1 million in investable assets), the top priorities they seek from their
advisors are transparency and simplicity, along with specialized advice (both
93%) and effective risk management (90%).
These people said they want to more actively work with their
advisors to understand the nature and potential performance of specific
investments, to manage downside risk and get advice that’s in tune with their
risk profile.
In that vein, according to the 14th annual World
Wealth Report, clients want “fundamental changes” in how they’re served by
advisors. In particular, they want advisors to have a better grasp of their
emotional and intellectual needs.
In response, says the survey, wealth management firms and
advisors are starting to incorporate emotional factors and behavioral finance
concepts into portfolio management to deliver the right level of high-touch
advice and market-relevant products and services.
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