Italy Wealth Management – High Net Worth (HNW) Investors

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Italy Wealth Management Report Overview

The overwhelming majority of Italy’s HNW population are male, in line with the regional average. Women form a significantly smaller share of the population. However, GlobalData expects the proportion of female HNW individuals to grow as more women enter high-ranking positions and engage in entrepreneurial endeavors. Furthermore, to encourage female involvement in entrepreneurship, various initiatives have been implemented to assist them in launching ventures. For example, in October 2023, LifeGate Way (an innovation hub for sustainable startups) collaborated with investment and consulting firm, Ventive, to introduce Women in Action. It was an accelerator program for female entrepreneurs, startups, and students who wish to innovate in the fields of environmental, social, and individual sustainability.

The Italy wealth management report analyzes the investment preferences, service requirements, and portfolio allocations of Italian HNW investors. The report, based on GlobalData’s annual Global Wealth Managers Survey, profiles HNWs in terms of their demographics, analyzes their propensity to invest offshore, and explores product and service demand.

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Key Investment Preferences ·       Advisory Asset Management

·       Automated Investment Services

·       Discretionary Asset Management

·       Execution-Only Asset Management

Key Reasons for
Expatriation
·       Better Lifestyle Conditions

·       Better Opportunities for Expats’ Children

·       Tax Efficiencies

·       Job Transfer

·       Retirement

Key Asset Allocation Classes ·       Equities

·       Bonds

·       Cash and Near Cash Products

·       Real Estate

·       Commodities

·       Alternatives

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Italy Wealth Management Market - Investment Preferences

The key investment preferences in the Italy wealth management market are advisory asset management, automated investment services, discretionary asset management, and execution-only asset management. Advisory asset management accounted for the highest share in the Italy Wealth Management Market. Automated investment services have a comfortable lead in terms of ‘very strong’ demand. This can be attributed to the younger generations’ desire to manage some proportion of their wealth independently.  As a result, relationship management and a focus on loyalty must be the central theme of the client-advisor relationship. This will help in discouraging HNW individuals from managing their investments on their own and drive take-up of managed mandates.

Italy Wealth Management Market Analysis by Investment Preferences, 2023 (%)

Italy Wealth Management Market Analysis by Investment Preferences, 2023 (%)

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Italy Wealth Management Market - Reasons for Expatriation of HNW Investors

Better lifestyle conditions are the leading factors driving expatriation to Italy

The drivers of expatriation are better lifestyle conditions, better opportunities for expats’ children, tax efficiencies, job transfer, and retirement, among others. Wealth managers in Italy targeting ex-pats should ensure their service offering is customized to accommodate the varied motivations for expatriation and the more intricate service needs of their community. To appeal to expat clients, wealth managers should offer non-financial support services such as education consulting to find out about local schools and universities, as well as relocation assistance to find appropriate accommodation.

Italy Wealth Management Market Analysis by Reasons for Expatriation, 2023 (%)

Italy Wealth Management Market Analysis by Reasons for Expatriation, 2023 (%)

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Italy Wealth Management Market - Asset Allocation Classes

Equities accounted for the highest Italy wealth management market share in 2023

The major asset allocation classes for HNW investors in the Italy wealth management market include equities, bonds, cash and near-cash products, real estate, commodities, and alternatives. Equities play the leading role in the average HNW investment portfolio which can partly be attributed to the strong performance of the FTSE MIB (Italy’s flagship index). In the one-year period ending December 2023, the FTSE MIB recorded an impressive gain, led by strong performance from banking stocks.

Italy Wealth Management Market by Asset Allocation Classes, 2023 (%)

Italy Wealth Management Market by Asset Allocation Classes, 2023 (%)

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Segments Covered in the Report

Italy Wealth Management Asset Allocation Classes Outlook (2023)

  • Equities
  • Bonds
  • Cash and Near Cash Products
  • Real Estate
  • Commodities
  • Alternatives

Scope

• Expats constitute 12.1% of the local HNW population. Despite this proportion being much lower than the regional average, these individuals still represent an attractive target market thanks to their more complex service requirements.

• Robo-advice accounts for 23.4% of the Italian HNW portfolio and has strong current demand.

• Equities, bonds, and commodities dominate the average Italian HNW portfolio.

Reasons to Buy

  • Understand Italy’s HNW wealth market, including the investment preferences of HNW individuals.
  • Develop and enhance your client targeting strategies using our data on HNW demographics and sources of wealth.
  • Tailor your investment product portfolio to match current and future demand for different asset classes among HNW individuals.

Ventive
Mediobanca Private Banking
Delubac Private Banking
Revolut
CNP Assurance
Moneyfarm
J.P. Morgan Private Bank

Table of Contents

1. Demographics

2. Expats

3. Investment Style Preferences

4. Asset Allocation Preferences

5. Offshore Investment Preferences

6. Products and Services

7. Appendix

Frequently asked questions

Italy Wealth Management – High Net Worth (HNW) Investors standard reports
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