High Net Worth Individual (HNWI) is a term used in the financial services industry to designate persons whose investible assets (such as stocks and bonds) exceed a given amount. Typically, these individuals are defined as holding financial assets (excluding their primary residence) with a value greater than US$1 million.
Year on year growth has seen High Net Worth Individuals (HNWIs) decreased their investment allocation into real estate and property investments and increased the amount of money that is held in overseas investment in the past ten years, according to a wealth report on the region’s ultra-rich.
Despite real estate remaining the largest asset class for High Net Worth Individuals (HNWIs), the trend towards moving funds into overseas investments or ‘offshore’ is on the rise, according to the 2018 Wealth Report released by AfrAsia Bank and New World Wealth last week
The report found that from 2007 to the end of 2017 HNWIs decreased their real estate allocation from 33% in 2007 to 30% in 2017. At the end of 2017, real estate was the largest asset class for HNWIs (30% of total HNWI assets), followed by 70% in equities, business interests, bonds, alternatives and cash.
Over 2016, 1.1 million people’s fortunes grew enough to see them enter the HNWI bracket. The rise in wealth has been put down to shares in both US and European markets performing especially well. The report also highlighted the fact that individuals who are already rich are getting richer more quickly than the wider population. This comes as no surprise considering that HNWIs have access to financial advice. In fact, during 2016 HNWIs earned returns of 24.3% on average in portfolios overseen by wealth managers..
Fund platforms fall into two distinct groups: fund wraps and fund supermarkets. Both are services that enable investors to buy investments simply online, usually at a discounted rate. In many cases the investments purchased can then be held on the Platform in a range of tax efficient wrappers.
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The platform has an open architecture philosophy. Its aim is to offer access to the broadest possible range of investments, including collective investments (UCITS including OEICS, SICAVs etc), structured products, ETFs, Investment Trusts, cash deposits and to direct equity trading.
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