Germany's High Net Worth (HNW) investors - which is dominated by professional and earning males - have a relatively high demand for wealth management services, confirming that competition in the country is severe. To stand out from the crowd, providers should differentiate themselves through their products and services and grow their expertise in specific areas of the wealth management space. The German HNW individuals spread their investments evenly across asset classes, with a slight preference towards commodities, property, and bonds. Although advisory mandates are preferred by the German HNW investors the most, the country also stands out in terms of their noteworthy increase in demand for robo-advisory.
This report analyzes the investing preferences and portfolio allocations of German HNW individuals. It profiles HNW investors in terms of their demographics, analyzes their propensity to invest offshore, and explores the products and services they demand.
- Expats constitute 35.5% of the local HNW population, a notably higher proportion than the European average.
- Robo-advisory services are witnessing a sharp increase in demand, with 63.8% of wealth managers agreeing that traditional wealth managers will lose market share to these services in the next 12 months.
- Dividend income and capital appreciation are primary aspects of the German HNW portfolio, with equities forming the largest proportion of onshore wealth.
- Commodities are seen as a safe investment, with lower market correlation being the number one driver for the German HNW investors to make investments in the asset class.
Reasons to Buy
- Develop and enhance your client targeting strategies using our data on HNW profiles and sources of wealth.
- Enhance your marketing strategies and capture new clients using insights from our data on HNW investors’ asset management style preferences.
- Tailor your investment product portfolio to match the current and future demand for different asset classes among HNW individuals.
- Develop your service proposition to match the demand expressed by the German HNW investors and react proactively to forecast changes in demand.
Table of Contents
- Investment Style Preferences
- Asset Allocation Preferences
- Offshore Investment Preferences
- Products and Services
A selection of companies mentioned in this report includes:
- Deutsche Bank