Expert: Sandra Carlisle, HSBC Global Asset Management (UK) 
Facilitator: Colette Dunn, Milliman Uk
The expert started this session with a question about what advisers clients looked like in 1997. We documented the following based on information provided by three of the advisers in the room:
|
Client average age |
AUM per client |
Client gender split M:F |
|
40 |
£100k |
70:30 |
|
55 |
£150-200k |
70:30 |
|
65 |
£500k |
90:10 |
The expert then talked through the different generations and how they had very different expectations around technology, societal norms, politics and attitudes to the environment. The generations were identified as:
- Generation Z – aged 0 - 13
- Millennials – aged 14 - 34
- Generation X – aged 35 - 49
- Baby Boomers – aged 50 - 71
- Silent generation – aged 72 - 89
As we move through the generations and as different generations become clients of advisers, services and offerings will gradually change.
Moving to the present, the expert outlined a number of emerging trends. There is a huge transfer of wealth happening between the generations on an individual level and within organisations. 80% of the next generation of business leaders say their style will be different from the current generation. This intergenerational transfer of wealth is likely to affect buying decisions.
The expert reported that, amongst UK Millennials, two thirds believe that value-based investing delivers the same or better financial returns. 87% think that business success should be measured by more than just financial performance. Millennials could drive USD15-20 trillion of inflows over the next 2-3 decades, roughly doubling the size of the US equity market.
US affluent Millennials want to invest in:
- Education – 58%
- Water – 39%
- Environment – 39%
- Gender equality – 30%
HSBC Asset Management has experienced an increase in interest in all these areas. There is a significant shift to ‘Green’ investments. For example, there has been a 300% increase in Climate Change investments. There has also been divestment in areas that are not Green, such as fossil fuel where there has been a 900% divestment.
The expert asked the same three advisers to provide information about their current client base and we documented the following information:
|
Client average age |
AUM per client |
Client gender split M:F |
|
70 |
£250k |
60:40 |
|
55 |
£800k |
60:40 |
|
65 |
£1.5m |
70:30 |
The advisers in the room concurred with this shift in attitude towards Green investments and said that they had seen it within their own client base. They reported a huge increase in Green investments, including amongst older investors.
Although there was a notable shift to more female clients, it was said that only 17% of Advisers are female and only 10% of those in the Fund Management industry are female.
Platforum reported that there had been a reduction in the average age of individuals on platforms. The average age for D2C platforms is around 54 years. It should be kept in mind that this will partly be due to Pension Freedoms and DB transfers.
Another trend we noted was the concentration of wealth and how this may result in the growth of family offices.
