HNW Investors Tend Towards Diversification, States Verdict Retail in Its Topical Report Now Available at

03 Jun 2016 • by Natalie Aster

LONDON – Diversification benefits represent the major factor driving HNW investors to choose funds rather than direct holdings, and through the lens of continuous market turbulences, wealth management professionals would act well to offer a strong set of funds that enable not only insight into different industry sectors, but also geographical regions and asset categories.

The reserve of mass affluent or institutional investors, exchange-traded funds (commonly referred to as ETFs) no longer make up a large chunk of the portfolios of HNW investors. It is becoming more and more essential to be able to provide a vast selection of such funds together with more sophisticated products.

A big portion of HNWIs’ wealth is presently locked up within direct property; it would be wise of wealth managers to convince their customers of the advantages of property funds so as to boost their fee revenue.

Whilst HNW investors are disposed towards being well diversified across asset categories and geographical areas, industry diversification is vital in exactly the same way - something that wealth management professionals should talk over with their customers.

Topical research report “Direct vs Fund Investments: HNW Preferences” created by Verdict Retail examines HNWIs’ investment preferences worldwide. The study breaks down HNW investors' fund portfolio by asset category and investment type alongside contrasting fund holdings to direct holdings.

The report analyses what percentage of HNW wealth is kept in funds compared to direct holdings, and explores how preferences vary from pole to pole. It provides detailed insights into why and when HNW investors opt for fund investments and when they choose rather direct holdings. The study investigates the various drivers shaping HNW investment preferences in the fund universe; and explores how fund holding preferences differ across asset categories.

More in-demand market studies developed by our partner are available at Verdict Retail page


The Market Publishers, Ltd.
Natalie Aster
Tel: +44 208 144 6009
Fax: +44 207 900 3970