This year’s Schroders Global Investor Insights Survey offers valuable insights into the shifting landscape of wealth management; highlighting the key strategies and challenges wealth advisers are navigating in today’s dynamic market. The survey was taken in the middle of 2024 against a backdrop of geopolitical tensions and challenging economic conditions. Despite this, sentiment amongst advisers and their clients remains encouragingly positive. We see signs of an increasingly positive attitude towards risk assets as well as clients and their advisers seeking out new sources of return through increased exposure to private assets.
The survey, which reflects the views of over 1,700 wealth advisers around the world, reveals encouraging confidence levels, particularly around achieving client return expectations. Despite the uncertain backdrop, 62% of advisers globally are optimistic about delivering on their clients’ return goals over the next 1-2 years.
Beyond returns, the colossal transfer of wealth between partners and generations currently in progress and set to continue for many years, remains a central focus. 59% of advisers globally consider wealth transfer to be highly important. However, for such a critical topic there is room for upskilling and increasing the level of discussion, particularly in some regions. Advisers in the Americas lead the way, with 62% prioritising wealth transfer discussions. In Latin America, 58% of advisers have engaged with over half of their client base on this topic, compared to 43% in EMEA and 46% in Asia Pacific. This suggests an opportunity for advisers in some regions to enhance their engagement with clients around inheritance planning and intergenerational wealth transfer.
Private markets continue to play an increasing role in wealth portfolios, with 55% of wealth advisers already allocating to private assets, and an additional 19% planning to do so in the next 1-2 years. The survey highlights the growing demand for private equity, multi-private asset solutions, and renewable infrastructure equity, with 65% of respondents citing the potential for higher returns as the key driver for investing in private markets. There are, of course some obstacles to overcome and the survey identifies the need for more clarity over liquidity and valuations and highlights the need for on-going education in this area.
The advent of AI and the massive cascade of wealth down through the generations present both opportunities and challenges for wealth professionals and for the way in which they run their business and interact with clients. The survey offers insights into how we can collaborate with our valued wealth adviser clients to enhance the service model, with a clear focus on the needs of the end client.
In summary, the findings of this year’s survey show wealth advisers adapting to complex ongoing challenges, but also embracing opportunities. As client expectations evolve and new investment themes emerge, advisers are positioned to guide their clients through these complexities, ensuring both resilience and growth in the years to come.
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