Wealth management firms lack the requisite tools to cater to the next generation of high-net-worth investors (HNWI) set to inherit USD83.5 trillion dollars by 2048, a report by the Capgemini Research Institute finds.
Gill Wadsworth reviewed the report and found that most firms “lack the advanced tools and integrated technologies to support this need”, which limits relationship managers’ ability to deepen client relationships and fully capture the wealth transfer opportunity.”
The research finds that almost half (47 per cent) of relationship managers are dissatisfied with their firm’s digital tools and technologies. Vivek Singh, Head of Banking for Capgemini Research Institute for Financial Services, says: “The defining trend is the unprecedented transfer of wealth to Gen X, millennials and Gen Z or next-gen investors. This multi-faceted HNWI segment has distinct investment priorities, a strong preference for digital engagement and an expectation for personalised valued-added services. Many firms are not adequately equipping them with the necessary tools, agentic AI capabilities and support.”
Emerging markets have been a consistent contender for investment returns this year, and in our In My Opinion this week, Patrick McKenna, Deputy Head of Multi‑Management, Mediolanum International Funds, writes that emerging markets have long been treated as a natural source of diversification in global portfolios.
“For many investors, simply owning the benchmark has been seen as a straightforward way to capture growth across a wide set of countries. But the structure of today’s emerging market indices tells a more complicated story,” McKenna writes. “What looks like broad exposure often turns out to be a narrow collection of large countries, dominant sectors, and politically influenced companies. As passive investing becomes more widespread, these underlying patterns matter more than ever, and they are making a stronger case for active management.”
Finally, I am very pleased to be back chairing two ETF panels at IMPower Fund Forum again this summer and will be visiting with our new head of business development, Simon Holloway. Come and find us. And, using this link, I can offer you a 10 per cent discount on the attendance.
Beverly Chandler, Managing Editor, Institutional Asset Manager
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