Knowledge Tree
Relations (1)
related 2.81 — strongly supporting 6 facts
Separately managed accounts and alternative investments are frequently linked as investment vehicles favored by high-net-worth individuals for their tax and diversification benefits, as noted in [1], [2], and [3]. Financial advisers are specifically encouraged to increase the utilization of both asset types when managing portfolios for wealthy clients, as outlined in [4] and [5], with their adoption rates often measured together in industry studies like [6].
Facts (6)
Sources
An Exploratory Study of the Wealthy's Investment Beliefs ... financialplanningassociation.org 6 facts
procedureFinancial advisers working with high-net-worth clients should enhance awareness of separately managed accounts and alternative investments, temper investment overconfidence, build financial literacy, proactively rebalance portfolios, and promote the non-financial benefits of professional advice.
claimThe high-net-worth cohort was more likely to own separately managed accounts (SMAs) and alternative investments than the affluent cohort, while cryptocurrency ownership levels were similar between the two groups.
procedureFinancial advisers serving wealthy clients should adopt five specific actions: increase the use of separately managed accounts and alternative investments; use SPIES (Lurtz 2020) and premortem planning (Klein 2007) to reduce investment overconfidence; improve client financial literacy regarding life expectancy; encourage proactive portfolio rebalancing; and emphasize the non-financial benefits of advisory services.
claimWealthier individuals are more likely to own separately managed accounts (SMAs) and alternative investments compared to the affluent cohort, according to the 2023 study on wealthy individuals' investment beliefs.
claimWealthier individuals are more likely to own separately managed accounts and alternative investments due to tax and diversification benefits.
measurementOnly 26 percent of high-net-worth respondents report owning separately managed accounts, and 19 percent report owning alternative investments.