How the ultra-rich choose their wealth managers

It is not easy to manage a billion dollars.Spencer Platt / Getty

• When they are looking for a wealth manager, high net worth individuals attach importance to customer service compared to the past performance of the company., according to Capgemini's World Wealth Report 2019.
• Of the very rich people surveyed, 79% said they were satisfied with their wealth managers and 82% said they were satisfied with their wealth managers. Capgemini.
• The fees and reputation of a wealth manager are also important for potential ultra-rich clients, Capgemini found.
• Visit the Business Insider home page for more stories.

It is not easy to manage a billion dollars.

That's why so many ultra-rich people are carefully thinking about choosing a wealth manager to help them retain or grow their wealth. Choosing the right wealth manager can be a very personal decision, but there is one factor that has more value than billionaires among wealth managers, the French technology consulting firm Capgemini found in its 2019 World Wealth report: good customer service.

In the ninth edition of its annual World Heritage Report, Capgemini examines how wealthy individuals manage their wealth. Researchers surveyed 2,500 wealthy people worth more than $ 1 million worldwide.

For nearly three years, customer service has been the focus of the most fortunate, said Business Insider Assistant Director of the group of global financial services market intelligence of Capgemini, Chirag Thakral. According to Capgemini, more than 90% of the ultra-rich respondents said they took into account how they were treated by wealth managers and potential management companies when making decisions. Customer service was placed above all other factors studied, including fees, peer recommendations, past performance of the company and its geographic location.

"Wealth management is a matter of personal contact," said Thakral. "End of the day, [your] The value proposition is the way you maintain personal relationships with the customer. "

As a result, more and more wealth management companies are offering their managers the technological tools to minimize their administrative tasks and maximize the time they have with their clients, said Thakral.

When they are looking for a wealth manager, billionaires value customer service over past performance of the company, according to Capgemini's report on global wealth 2019.Shayanne Gal / Business Insider

High net worth individuals know how to choose wealth managers who meet their needs, said Thakral, with 79% of respondents saying they are satisfied with their wealth managers and 82% with their management companies.

Read more: China's new technology market just hit 3 billionaires in a day, and it could be a turning point after a hectic year for the country's richest

Peter Mallouk, chief investment officer of Creative Planning, the largest wealth management company in the United States, attributes his success to his ability to tailor each client's portfolio to their specific needs., Marley Jay of Business Insider previously reported. Mallouk's clients often ask him to diversify their portfolios while reducing their tax bill or adopting risky strategies, such as using loans to buy shares.

"Having to build and customize really allows you to sit down with someone and say two things: what do you need and when do you need it?" Mallouk says, "And second, how can we do this in a way that is compatible with your values?"