Hnw Asset Allocation Trends: Jsbmarketresearch

HNW Asset Allocation Trends

Released on 21st March 2016

Summary

There is no single driver influencing HNW investment preferences. On the contrary, investment choices are determined by interplay of factors such as risk preference, economic forces, and investor attitudes. As we enter 2016 we expect a reallocation of assets, benefiting alternative investment holdings globally. At the same time, HNW investors are looking for cheap buying opportunities in the equity space.

Key Findings

- The most striking trend is the surge in alternatives, which constitute an increasingly large share of the typical portfolio as investors seek diversification from traditional investments. We are also seeing rising demand for exchange-traded funds, which thanks to the diversification they provide and their low costs are rapidly growing in popularity.

- Drawn in by capital appreciation opportunities, investors are forecast to channel more wealth into equities. This trend will be particularly pronounced in Europe, where investors are hoping that loose monetary conditions will finally stimulate equity markets.

- In the fixed income space, HNW investors are moving out of high-yield bonds, with investor concern mounting as volatility in the junk bond market persists. In many global markets wealth managers will have a tough time promoting bond holdings in general. Their best bet will be bond funds thanks to the diversification benefits they provide.

Synopsis

“HNW Asset Allocation Trends” draws on our 2015 Global Wealth Managers Survey to analyze HNW asset allocation strategies in 20 key markets. In particular, it examines the drivers behind investment choices now and over the next 12 months. Draws on our proprietary 2015 Global Wealth Managers Survey to present consistent data across 20 markets

- Analyze HNW asset allocation strategies in 20 key HNW markets including Australia, the UK, and the US.

- Understand the drivers that determine...