Asia is undergoing a historic transfer of wealth. Many financial advisors are concerned about business loss from the new generation, according to a survey by Natixis Investment Managers.
Nearly half of financial advisors (49 percent) in Asia are worried that they will not retain assets from client’s spouses or children, according to the «2024 Natixis Global Survey of Financial Advisors».
While advisors are able to retain client relationships 72 percent of the time when a spouse inherits, they are successful only 44 percent of the time when the children inherit. In fact, 40 percent claim significant asset loss through generational attrition.
To boost retention, 80 percent say they are regularly discussing family wealth planning with clients. They are also providing a range of related services including trusts and estate planning (56 percent) personalized services such as career advice and networking (42 percent) and consolidation of managed accounts (32 percent).
Demographic Focus Elsewhere
Despite the threat of the next generation, prospecting is currently concentrated on other age groups. 70 percent and 82 percent of financial advisors are focused on those aged from 35 to 49 years and 50 to 59 years, respectively. Overall, advisors dedicate only an average of 9 percent of their time to acquiring assets.
The survey was based on responses from 2,700 global financial professionals in 20 countries, including 650 in Asia. Data was gathered from June to August 2024 by research firm CoreData with additional analysis conducted by the Natixis Center for Investor Insights.
