Study by the Handelsblatt Research Institute and the multi-family office FINVIA: Germans' wealth management is not professionally positioned

▪ The survey shows how Germany's wealthy invest their money
▪ The majority pursue opportunistic goals
▪ Over 60% do not seek external support from experts

‍Frankfurtam Main, 03.02.2021 - The multi-family office FINVIA, together with the Handelsblatt Research Institute, is today publishing a study on wealth management wealthy Germans that provides insights into the investment behavior of this otherwise closed clientele. For the study, 300 people aged 18 and over with total assets of at least 500,000 euros who also use some form of investment product were surveyed. In addition to the distribution of wealth across various asset classes, the motives and strategies of the wealthy were also examined, as well as the extent to which they rely on external support. The study also places the results of the survey of the German wealthy in an international context and shows how the investment behavior of the wealthy differs internationally.

The results of the study make it clear that the wealth management of Germans is not entirely professional. Among other things, the survey shows that the majority do not allocate their wealth strategically to different asset classes, but rather allocate their assets opportunistically. In addition, 63% do not seek external help from experts when implementing their investment strategy.

When looking at the asset classes considered, the popularity of equities and real estate stands out: 42.6% of wealth are invested in real estate and 24.6% in equities. Despite the proven strong returns of private equity, this asset class is only found in 2.3% of wealth . This is a surprising result, as investment experts recommend investing in private equity for a diversified and efficient investment portfolio.

The study also points to a particular risk for the wealthy when investing: When it comes to shares and bonds, the respondents have a clear home bias, i.e. they prefer shares and bonds from their home country and therefore take various risks.

"We are surprised at how little professionalism many wealthy people still have when it comes to managing their wealth assets. The fact that, among other things, asset classes are selected opportunistically, almost arbitrarily, and there is a clear home bias when it comes to equity investments, harbors major risks. We believe that the main reason for the inadequate wealth management is a lack of trust in the financial industry and external advisors. The industry urgently needs to address this if it wants to avoid the loss of assets that would otherwise be imminent," says Reinhard Panse, Chief Investment Officer at FINVIA.

You can read the entire study here.

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