Alternative Investments for Private Clients 2007

Overview

Catalyst

Summary

Methodology

Executive Summary

Market context

Customer focus

Table of Contents

Overview

Catalyst

Summary

Methodology

Executive Summary

Market context

Customer focus

Market Context

The vast majority of asset managers in Europe believe that distributing alternative investment products benefits their business and their high net worth clients

There is a general consensus regarding the most appropriate distribution channels for alternative investments but different regions tend to favor certain channels

There is a small tier of key players that are popular among asset managers in the main European alternative investments markets

Data tables

Customer Focus

The need for diversification and defensive strategies are still the main reasons wealthy clients turn to alternative investments but investors are becoming less cautious

Hedge funds remain the key alternative investment product area among wealthy clients but private equity is also popular

High net worth clients are the most important client segment for private equity funds at present, but their importance in most asset classes will decline over the next three years

In the near future growth will be hampered by lack of understanding and perceived expense among high net worth clients

Data tables

APPENDIX

Definitions

Methodology

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: All responses to the question: To what extent do you agree that alternative investments are well suited to high net worth investors?

Table 2: All responses to the question: To what extent do you agree that alternative investments are well suited to high net worth investors?

Table 3: All responses to the question: To what extent do you agree that alternative investments offer asset managers the chance to develop new relationships with new wealth manager partners?

Table 4: All responses to the question: What do you think is the best way for the following alternative investments to be distributed to high net worth investors?

Table 5: All responses to the question: What do you think is the best way for the following alternative investments to be distributed to high net worth investors?

Table 6: All French responses to the question: In your country, who are the three best asset managers at building the following alternative investments?

Table 7: All German responses to the question: In your country, who are the three best asset managers at building the following alternative investments?

Table 8: All Italian responses to the question: In your country, who are the three best asset managers at building the following alternative investments?

Table 9: All Spanish responses to the question: In your country, who are the three best asset managers at building the following alternative investments?

Table 10: All British responses to the question: In your country, who are the three best asset managers at building the following altern

Table 11: All responses to the question: In your opinion, what is the most important reason why wealthy clients are demanding alternative investments?

Table 12: All responses to the question: In your opinion, what is the most important reason why wealthy clients are demanding alternative investments?

Table 13: All responses to the question: Do your high net worth clients get into the property investment market mainly for defensive or opportunistic reasons?

Table 14: All responses to the question: What type of alternative investment fund is most in demand by your wealthy clients or the wealth managers who offer your funds to their clients?

Table 15: All responses to the question: What type of alternative investment fund will be most in demand by your wealthy clients or the wealth managers who offer your funds to their clients in three years' time?

Table 16: All responses of high net worth to the question: Which is your biggest customer group for the following products now, and in three years' time?

Table 17: All responses to the question: For the following investments, from which customer base will the most increase in demand come in three years' time?

Table 18: All responses to the question: Thinking of high net worth clients, what do you think will be the major barriers to wider take-up of alternative investments in the next three years?

Table 19: All responses to the question: Thinking of the next three years, how do you think demand for alternative investments will change among high net worth investors?

List of Figures

Figure 1: Alternative investments are considered to be well suited to high net worth investors across Europe

Figure 2: All Spanish asset managers believe that alternative investments are well suited to high net worth investors

Figure 3: Most asset managers believe that alternative investments can help them develop relationships with new wealth manager partners

Figure 4: There is general agreement as to the best distribution channels across the alternative asset classes

Figure 5: The French market is notably dominated by the retail banking channel as the primary distribution route for alternative investments sold to high net worth clients

Figure 6: Diversification is still the primary incentive for wealthy clients to invest in alternative investments

Figure 7: No German asset managers believed that marketing affected wealthy clients' choice to invest in alternative products

Figure 8: Defensive attitudes in the property investment sector of the alternative investments market have declined over the past year

Figure 9: Asset managers believe that hedge funds are the most popular form of alternative investment among wealth managers and their wealthy clients

Figure 10: Hedge funds will remain popular among wealthy individuals in Europe in the medium term

Figure 11: The importance of high net worth clients in the total alternative investment market will decline over the next three years

Figure 12: Many asset managers expect high net worth clients' demand to increase most for REITs and private equity funds

Figure 13: Several factors are important barriers to wider take-up of alternative investments among wealthy clients over the next three years

Figure 14: Asset managers were almost all positive about growth in demand for alternative investments among wealthy clients