Asset managers flag registered investments and multi-family offices as the most appealing channels to sell to high net worth investors, according to new research.
Cerulli Associates, Boston, published this finding in its latest report, "High net worth and ultra-high net worth markets 2012: Understanding bank trust departments, family offices, private client groups and other HNW providers." The report analyzes the U.S. high net worth (more than $5 million in investable assets) and ultra-high net worth (greater than $20 million) marketplaces, including vehicle usage, fees and services provided by bank trust departments, family offices and private client groups.
When asked which of 9 distribution channels is the most appealing for asset managers to address the needs of high net worth investors, the survey respondents ranked RIAs and wealth managers highest, giving them a 4.5 score on a desirability scale (where 4.5 is the most desirable and 1 is the least desirable), followed by multiple-family offices, which received a 4.4 score.
Less attractive on the desirability scale are, the report adds, are private banks (4.1), wirehouses (3.7), single-family family offices (3.5), institutional consultants (3.4), regional and independent broker/dealers (3.2), direct sale to high net worth clients (2.8) and discount broker-dealers (1.6).
