The Investment Trends report, now in its thirteenth year, showed that there were 485,000 HNW investors as at September 2020 – a figure similar to 2019 (490,000) but still significantly larger than 2018 levels (460,000).
“The size of the Australian HNW population remains resilient despite tough market conditions at home and abroad. While the uncertain investing climate had minimal impact on market size, it has profoundly impacted the attitudes and preferences of HNW investors towards investing and advice,” Choi said.
“The last 12 months saw a large shift in the perceptions of advice among HNW investors, with a sharp increase in ‘validators’ who are open to receiving financial advice (56%, up from 40% in 2019) and a corresponding fall in ‘self-directed’ HNWs who prefer making decisions on their own (34%, down from 49%),” said Choi.
The Universal Hierarchy Communicating with HNWIs is daunting because it may seem as if we are talking with someone who lives in another world.
For those of us who are yet to make it there, it can be difficult to imagine what we might do if we were to have a billion dollars. With this amount of money, it is clear that we wouldn’t need to worry about where our next meal (or any of our meals, ever) would come from or whether we’d have a place to sleep at night. It would seem, most likely, that we can move beyond the basic trappings of materiality and onto something greater.
Why advisors need to consider micro-cap stocks for investors’ portfolios Blair Driscoll
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A new year is a great time for advisors to explore new approaches for driving better investment outcomes. That’s why they should consider publicly held micro-cap companies as part of their investment strategy in 2021. This asset class is one of the least efficient areas of the equity markets and warrants a deeper look given its potential to generate outsized returns.
Burgeoning, publicly traded micro-cap companies provide a viable alternative to private equity, which has become a major component of institutional and high-net-worth investors’ portfolios. They have much in common. Both asset classes provide access to early-stage growth companies, management teams with substantial personal investments in their firms and added returns captured from an illiquidity premium.