Advisor | July 2022

In times of sudden and unpredictable changes, wondering about future megatrends without considering those concerned – i.e. end investors together with their private bankers and financial advisors – would be an incomplete exercise.

For this reason, Finer has recently carried out a survey for Advisor. The results of the survey were presented for the first time at the Megatrend Forum 2022.

The survey involved 2.000 financial professionals (50% financial advisors and 50% private bankers) and 1.000 clients (50% affluent clients – with assets worth between € 500K and 1 million – and 50% private clients – with assets worth over 1.5 million).

The survey provided an answer to five large-scale questions.

What megatrends are bound to grow in the near future?

The shortage of resources, the research for alternative sources and the fight against climate change are the most popular megatrends among both end investors and financial professionals.

However, the survey highlighted significant differences between private and affluent clients. Private clients tend to be are more sensitive to the issues of private markets, longevity and space economy. On the other hand, affluent clients tend to have higher awareness towards the metaverse.

As for financial professionals, the picture is very similar: private bankers tend to be more sensitive to issues pertaining to private markets and longevity, while financial advisors tend to be more interested in technological progress and the metaverse.

What are the cornerstones of the world of investments?

Sustainability is the backbone of the world of investments for both end investors and financial professionals. Digitalization is the second pillar, while private markets are the third, more so among private clients and private bankers.

What sectors are going to represent the future?

According to both clients and financial professionals, the research for sustainable energy leads the way. On the other hand, real assets are gaining more and more consensus among private clients and private bankers. As for space economy, financial professionals are more sensitive to the topic than their clients.

What megatrends are worth investing on?

The shortage of resources and the fight against climate change are the most popular topics. Private clients confirm their interest towards private markets and issues concerning longevity; on the other hand, upper affluent clients aim towards technological progress.

In both cases, clients and financial professionals gave similar responses, thus confirming the key role of financial advisors in orienting the choices of their clients.

What megatrends are currently endangered by the conflict in Ukraine?

The idea that the fight for the climate change might take a back seat is quite widespread. Moreover, private clients fear that the consequences of the conflict and the consequent increase in the costs of energy and raw materials could put a strain on private businesses and, as a consequence, on investments in the private market.

One key element: there is no megatrend without financial professionals. The survey only confirmed their role as pivots in orienting and raising awareness among their clients about the opportunities to invest.

Does the role of financial professionals in asset management as a megatrend of tomorrow contradict those who image them succumbing to algorithms?

Nicola Ronchetti