(L-R) Toby Potter, Michael Karagianis, and James Trude

The looming transfer of intergenerational wealth is rife with opportunities and challenges for financial advisers, and there are lessons learned from High-Net-Worth advisers on winning that next generation.

Speaking at the IMAP Advice In Action Conference in Sydney on Thursday, Clime Investment Management chief client officer James Trude emphasised the inherent complexities of this upcoming wealth shift, urging advisers to navigate this fast-changing landscape by building trust across generations.

“We’ve seen some of the stats on how much the money sticks around with the same adviser – they’re very low numbers,” he said.

“Six per cent of the children still use the same adviser, and the 47 per cent choose to do it themselves. Maybe relationships are not there to win.”

To address this issue, Clime sought advice from its HNW advisers, who emphasised establishing trust across generations to secure the long-term stability of assets.

“One of [our] advisers has engaged with one particular family group over five generations, which is pretty amazing,” Trude said.

“To be able to have that connectivity across multiple generations really shows that it’s much deeper than just pure investment solution.”

Trude said the adviser establishes intergeneration trust by documenting family values, recording how relatives connect and engage with each other, confirming the family mission, and determining how he can assist families in achieving their financial goals.

“[Helping them achieve their financial goals can be done] through education, philanthropy, or something beyond just the pure investment piece,” Trude said.

“[All this will really] help facilitate and cement sustainability across the generations.”

A report released by AUSIEX this week suggested advisers prioritise investment in technology to stay relevant to younger generations.

Exclusive demands

JANA Investment Advisers head of wealth partnerships and family offices Michael Karagianis said it is common for HNW clients to require specialist help.

“Be aware of what you can bring to the table [and] don’t necessarily be put off by it,” he said. “[Know when] you need to actually get some assistance in the process.”