In the rapidly evolving wealth management landscape, one conversation continues to dominate boardrooms, client meetings and strategy sessions across the industry: How do I retain and service a retail client who’s transitioned into the wholesale/HNW space – without losing them to larger institutions?
It’s a valid concern. According to Investment Trends, as of 2024, Australia is home to 690,000 high-net-worth individuals (HNW’s), collectively responsible for approximately $3.5 trillion in investable assets. Even more compelling? This figure is growing at 7% per annum, driven largely by the intergenerational wealth transfer forecast to reshape the wealth management sector over the next 20 years.
With 44% of new HNW entrants still unadvised, the opportunity for advisers is compelling.
Understanding the HNW Spectrum
Not all HNW clients are created equal. To service them effectively, it’s essential to understand their varying needs across different tiers:
- Emerging Affluent: $1M-$2.5M
- Established Affluent: $2.5M-$5M
- Advanced HNW: $30M-$70M
- Ultra HNW: $70M+
The most significant growth right now is coming from the Established Affluent – primarily from retail clients experiencing liquidity events like property sales, inheritances, or divorces. These clients are no longer deemed “retail” and their expectations have shifted dramatically. Advisers must shift gears – from cookie-cutter portfolios to concierge-level service.
What HNW Clients Want: It’s Not Just About Returns
A Capgemini Research Institute study found that 86% of HNW clients want personalised offerings. Their needs are complex, spanning beyond just investment returns:
- Income generation
- Risk mitigation
- Intergenerational planning
- Bespoke asset structuring
- ESG-aligned or values-based investing
- Global and private market access
This complexity requires a network of best-in-class experts: legal, accounting, tax, succession planning, and dispute resolution professionals.
Don’t Overlook Female Investors – They’re Leading the Wealth Shift
Here’s a wake-up call:
- 70% of women leave their adviser after a major life event such as inheritance or widowhood
- Women now control 33% of Australian wealth and are growing their wealth 40% faster than men
- By 2030, women will manage two-thirds of household wealth
Source: Zakrzewski, Anna, Kedra Newsom Reeves, Michael Kahlich, Maximillian Klein, Andrea Real Mattar, and Stephen Knobel (2020, 9 April). Managing the Next Decade of Women’s Wealth. BCG.
According to research from Schroders and Benchmark Capital, women are seeking:
- Trust – genuine relationship-building and transparency
- Clear value – confidence that fees reflect service quality
- Service delivery – proactive, consistent engagement
- Understanding of life goals – not just financial, but personal
- Inclusive communication – no jargon, no assumptions
- Support through transitions – divorce, widowhood, caregiving
- Values alignment – particularly around ESG and impact investing
However, there’s a glaring disconnect between what women want and what advisers think they’re looking for. This gap presents both a risk and an opportunity.
Female clients will leave if they feel undervalued but they’re extremely loyal when treated right. Building an inclusive, values-based advisory approach is not just ethical, it’s commercially smart.
How to Scale HNW Advice Efficiently
The secret to scaling HNW advice lies in replicating your retail structure but modifying its components for complexity and liquidity:
- Core Portfolio
A managed account structure that includes wholesale-only investments and quarterly liquid alternatives. - Satellite Portfolio
Bespoke solutions tailored to specific client needs – direct investments, ESG overlays, private market deals, and capital call structures. - Communication Strategy
- Quarterly reports
- Annual investment outlooks
- Bespoke updates during volatility or major transitions
Transitioning Your Retail Book
Start by retaining the core retail portfolio and adding a wedge of wholesale alternatives. This allows you to scale. Scaling your advice for high-net-worth clients requires more than just managed accounts and model portfolios – it demands access to institutional-grade tools that give you and your clients a genuine edge. Here’s what to consider including in your toolkit:
- Wholesale managed account solutions
- Fixed income access, including direct bonds, direct loans, and cash-enhanced solutions
- Private market opportunities
- Structured notes and leveraged OTC options
- Global market access
- Live execution
- Foreign exchange hedging
- Ability to pay and receive in 15 different currencies
- Opportunistic investments
- White-labelled client content for scalable communication
Bottlenecks for Advisers
Let’s call them out:
- Time: You’re already stretched
- Staffing: No internal investment team to support implementation
- Tech Limitations: Not all platforms support wholesale or quarterly liquid investments
- Compliance: Increased requirements – and not going anywhere
Client-side hurdles?
- Perceived lack of personalisation
- Resistance to discretion
- Messy inherited portfolios
- Platform constraints limiting what you can offer
Your Next Step
This isn’t about making your business look like an investment bank – it’s about offering the same sophistication while maintaining your independeance, agility and client intimacy. And you don’t need to build it all yourself:
- Work with an asset consultant
- Consider an OCIO (outsourced CIO) model
- Leverage existing wholesale managed account solutions
- Focus on building a personalised client experience at scale
And crucially, equip your practice with the right investment platform that enables you to:
- Build scalable, high-conviction portfolios tailored to your clients’ needs
- Access a broad universe of investments, including global and private markets
- Consolidate reporting across complex portfolios for greater transparency and efficiency
- Operate within one integrated platform built for HNW and wholesale client solutions
Scaling HNW solutions is not about adding complexity – it’s about offering relevance. It’s about creating a service that feels bespoke, even when it’s delivered through a scalable system. Done right, the upside is clear: greater client retention, deeper relationships and access to the fastest growing segment of the advice market.
For more information on how Mason Stevens can support your journey towards servicing HNW clients, visit masonstevens.com.au.
To find out more about how we can help you grow and scale your wealth practice, visit: https://masonstevens.com.au/growth-engine/ or contact us here.
