Newly released survey data about financial adviser and private banking business worldwide shows hedge funds and structured products will be the most important categories of investments for wealth managers to offer over the next two years.
In addition, hedge funds and structured products came third place behind intergenerational and retirement products as being 'very important' product offerings within the next two years, according to the 2009 annual global wealth and private banking survey by PricewaterhouseCoopers (PwC).
Over the past few years, "Structured products were there as yield-generating products, but we now see them as diversification tools," said Steven Crosby, US leader of PwC's Private Banking & Wealth Management Practice.
Another key theme will be transparency, he said: "Transparency is the new gold standard in terms of products and client servicing, eclipsing performance and rivalling brand in the new world order."
This year's PwC survey included responses from 238 wealth managers in 40 countries. Respondents were affiliated with global banks, large private client groups at broker/dealers, specialist boutiques firms, family offices and some high-net-worth individuals.