Gen Z and millennial high-net-worth investors are transforming the landscape of private wealth management, according to a recent survey by the CFA Institute. The research, titled “NextGen Investors: A Guide for Wealth Managers and Financial Advisers,” highlights the evolving expectations of these younger investors, who are set to inherit trillions in the Great Wealth Transfer. The survey, which included over 2,400 affluent investors from countries such as Singapore, the UK, and the US, reveals a strong preference for personalised and digital financial advice.
In Singapore, 70% of young investors anticipate receiving an inheritance, with 50% holding exchange-traded funds (ETFs), a significant increase compared to older generations. Cindy Tan, President of CFA Society Singapore, noted the confidence among young investors in achieving their financial goals, with a focus on stocks, ETFs, and cryptocurrency. The survey also found that these investors heavily utilise digital communication channels, indicating a shift towards advisory models that integrate technology and human expertise.
Rhodri Preece, Senior Head of Research at CFA Institute, emphasised that Gen Z and millennial investors are redefining wealth management by seeking holistic advice and frequent digital engagement. They expect real-time information and investment options that align with their life goals. Genevieve Hayman, Senior Researcher at CFA Institute, added that these investors are not abandoning professional advice but are seeking collaborative models that combine human expertise with technology.
The survey underscores the need for wealth managers to adapt to these changing demands, with technology, including AI, playing a crucial role in delivering personalised and trustworthy advice.
