Wealth in the Netherlands: HNW Investors

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Typically Dutch HNW individuals come from an entrepreneurial background or are family business owners, while the leading generators of wealth are the IT and financial services industries. While younger than the regional average, most Dutch HNW individuals are over 50, with almost a quarter over 65. Expats form a small proportion of the HNW population (4.1%), with the UK accounting for the largest share. The typical Dutch HNW individual invests heavily into equities, which make up nearly half of the typical HNW portfolio, while bonds constitute another third. Allocations into equities, property, and cash are expected to increase, demand for alternatives will remain unchanged, while demand for bonds and commodities is set to decrease amid low yields and commodity prices.

Scope

• Compared to the wider region, expats do not form a large proportion of the resident HNW population, and have been in the Netherlands for less time than the European average.

• Discretionary mandates account for 49.9% of portfolios, while 42.3% is invested in advisory mandates and 7.8% in execution-only mandates.

• The largest share of HNW wealth is allocated into equities, which make up 44% of the typical HNW portfolio, while bonds constitute 31%.

• The desire to receive better returns through advisors and investors’ highly complex portfolios are the leading reasons why Dutch HNW individuals seek professional advice.

• Those seeking to self-direct at least part of their wealth are largely motivated by the desire to retain exclusive control over part of their portfolio.

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 product and service demand expressed by Dutch HNW investors and react proactively to the forecasted change in demand.

ABN Amro
ING

Table of Contents

EXECUTIVE SUMMARY

Most Dutch HNW individuals are either family business owners or entrepreneurs

Key findings

Critical success factors

PROFILING THE DUTCH HNW INVESTOR

Entrepreneurship is the leading source of Dutch HNW wealth

Entrepreneurs should be targeted with tailored service propositions

Many HNW investors have built their fortunes through IT and financial services

Dutch HNW individuals are older, making wealth preservation crucial

Expats in the Netherlands form a small share of the HNW population

Expats constitute

4.1% of the local HNW population

Cost considerations motivate expats to keep wealth in the Netherlands

The UK accounts for almost half of HNW expats in the Netherlands

DUTCH HNW INVESTMENT STYLE PREFERENCES

Only

7.8% of HNW wealth is held via execution-only mandates, making the Netherlands an attractive market to operate in

Wealth managers should highlight their specialist expertise

The largest proportion of HNW wealth is kept in discretionary mandates

Demand is strongest for discretionary mandates

Discretionary mandates will remain the favored asset management offering

A desire to retain control of some of their investments motivates self-directed investors

ASSET ALLOCATION TRENDS AMONG DUTCH HNW INDIVIDUALS

Equities will remain the most favored asset class

Equities constitute nearly half of HNW investors' managed wealth, and are mostly held through funds

Capital appreciation opportunities and dividend income feed the HNW appetite for equities

Bond investments are forecast to decrease in popularity

Balancing out equity risk, Dutch investors prefer bond funds and direct government bonds

Bond investments will continue to decrease in popularity

Cash and near-cash allocation is on par with the wider region

The Dutch HNW cash portfolio is largely in local currency deposits

Low interest rates will continue to depress demand for cash and near cash-products

Property constitutes 6% of the typical HNW portfolio

Dutch HNW investors prefer property investments through funds

The revitalized property market will motivate investors to increase allocations in this asset class

Alternatives constitute 5% of the typical HNW portfolio

Hedge funds account for more than half of alternatives

Asset diversification is the leading driver of alternative investments

DUTCH HNW PRODUCT AND SERVICE DEMAND

Demand for planning services is below the regional average

ABN Amro offers services for families seeking to secure their wealth over generations

Demand for advice will offer opportunities in the future

Demand for investment property and tax advice lags behind the regional average

Wealth managers lacking the in-house resources to provide property advice should consider partnerships in light of rising demand

APPENDIX

Abbreviations and acronyms

Definitions

Affluent

Mass affluent

HNW

Liquid assets

Methodology

Verdict Financial's 2015 Global Wealth Managers Survey

Verdict Financial's 2014 Global Wealth Managers Survey

Exchange rates

Bibliography

Further reading

About Verdict Financial

Disclaimer

Frequently asked questions

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