Wealth in Brazil: HNW Investors; Understanding HNW investors and wealth management strategies.
All the vital news, analysis, and commentary curated by our industry experts.
The majority of wealth in Brazil originates from the construction and finance industries, and can be attributed to a range of sources. These investors are confident enough to deal with their financial affairs, but to gain access to sophisticated products and achieve better returns they opt for management services. Investment portfolios are built around cash and bonds, but it is expected that alternative holdings will continue to gain importance.
• 55.3% of Brazilian HNW wealth can be attributed to earned income or first-generation entrepreneurship.
• As Brazil offers a wide range of sectors in which to invest, it is expected that HNW expats will continue to allocate a portion of their wealth to opportunities in Brazil.
• Access to more sophisticated investment products is the number one reason Brazilian HNW clients opt to have their wealth professionally managed, while 22.4% expect better returns though advisors.
• A noteworthy 22% of HNW client portfolios are allocated into alternatives. Demand is expected to increase along with the investment opportunities offered by multimercados.
• Among planning services, financial planning shows the strongest demand. It is expected that inheritance and pension planning will experience strong demand in the next two years, and as such wealth managers will do well to provide a complete suite of services.
Reasons to Buy
Develop and enhance your client targeting strategies using our data on HNW profiles and sources of wealth.
Give your marketing strategies the edge required and capture new clients using insights from our data on HNW investors’ drivers for seeking investment advice vs. self-directing.
Tailor your investment product portfolio to match current and future demand for different asset classes among HNW individuals.
Develop your service proposition to match the service and product demand expressed by Brazilian HNW investors and react proactively to the forecasted change in demand.
Table of Contents
Brazilian HNW clients take a proactive approach to wealth management
Critical success factors
PROFILING THE BRAZILIAN HNW INVESTOR
The main source of Brazilian HNW wealth is earned income
A diversified market commands a focus on a range of wealth sources
A diversified market commands a focus on a range of wealth sources
Brazilian HNW managers should target expats within Europe
Expats account for
4.3% of the Brazilian HNW population
The largest proportion of HNW expats originate from the US and Mexico
Brazil to host investor meetings to widen private investment opportunities
HNW expats invest in Brazil for better opportunities and greater control over investments
HNW INVESTMENT STYLE PREFERENCES
Brazilian HNW individuals want to be involved in managing their wealth
Access to exclusive products motivates HNW investors to seek out wealth management services
Nearly half of Brazil's HNW wealth is held in advisory mandates
Wealth managers experience the greatest demand for execution-only mandates
Demand for discretionary asset management is expected to increase the most
70.9% of wealth managers expect demand for discretionary asset management to increase
Brazilian HNW clients are confident in taking the reins on wealth management
UNDERSTANDING ASSET ALLOCATION TRENDS AMONG BRAZILIAN HNW INVESTORS
The majority of Brazilian HNW investors expect demand to increase for alternative investments
Cash and bonds dominate HNW portfolios
Brazilian HNW individuals hold 17% of their wealth in equities
27% of HNW client portfolios are allocated into bond investments
Cash is the most common investment option for Brazilian HNW investors
A minimal proportion of Brazilian HNW client portfolios is invested in property
Demand for alternative investments is expected to grow
Commodity investments are kept to a minimum, but are expected to grow in demand
HNW PRODUCT AND SERIVCE DEMAND
Financial planning services are essential for Brazilian wealth managers
Wealth managers are most likely to experience strong demand for financial planning
Demand for planning services is expected to increase in the next two years
Investment property advice is more prevalent among Brazilian HNW investors
Tax planning is not considered to be an in-demand service among Brazilian clients
Tax planning services will become a focal point of wealth management services
Abbreviations and acronyms
Verdict Financial's 2015 Global Wealth Managers Survey
Verdict Financial's 2014 Global Wealth Managers Survey
About Verdict Financial
Frequently asked questions
Undecided about purchasing this report?Enquire Before Buying
Tel +44 20 7947 2745
Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.
Business Intelligence & Marketing Manager, SAL Heavy Lift
“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.
GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”
Market Analyst & Management, Liebherr-Werk
“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”
Head of Key Accounts, Saab AB
Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.
Marketing Intelligence Manager, Portugal Foods
Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.
Head of Customer Insight and Research, Standard Chartered
Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.
I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.
I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.
Head of Consumer Sensory Insights, Givaudan
“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.
Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”
Senior Account Manager, TSYS
GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise. The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.
I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.
One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.