Family Office
UHNWs are now more likely to seek pro's guidance

Mid-tier wealthy who regularly consult advisors up 71% from two years ago. In the face of market volatility and economic uncertainty, high-net-worth investors are much less likely to manage portfolios all on their own.
More than a third -- 36% -- of investors worth between $5 million and $25 million (primarily residences aside) consider themselves "advisor-assisted," according to a June 2008 survey by Spectrem Group, a Chicago-based firm that provides research on the wealth and retirement markets.
That's a 71% increase from 2006.
Only 15% of investors in the $5-million-to-$25-million category defined themselves as "self-directed" in June; a decline of 42% from 2006.
That sinking feeling
Of course markets have grown much choppier in the past year or so. At the end of June 2006, the S&P 500 was down nearly 4% for the decade to date, but it was heading north from the five-year lows hit in October 2002. By the end of June this year, the S&P 500 was down about 3% for the decade but 18% off its 52-week high.
"In a highly complex market environment, ultra-high-net-worth investors are increasingly seeking professional advice rather than going it alone," says Spectrem's president George Walper Jr.. "The number who regularly consult with advisors to navigate the financial markets has nearly doubled, while far fewer continue to make their investment decisions independently."
Sprectrem's Ultra High Net Worth Investor 2008 is based on a survey of more than 500 investors it calls "ultra high net worth" -- those with at least $5 million in net worth.
For purposes of their World Wealth Report, Merrill Lynch and Capgemini reserve the ultra-high-net-worth designation for individuals and families with at least $30 million in financial assets. -FWR
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