Financial Advisors Have the Most Power When It Comes to UHNW Investment Decision-Making

New Study Shows the Influence That Financial Advisors Have on
Ultra-High Net Worth Families in North America

NEW YORK–(BUSINESS WIRE)–Financial Advisors have a bigger role in investment decision-making for
North American ultra-high net worth families than any other family
member, group or committee, according to a new study from Morgan Stanley
Private Wealth Management and Campden Wealth Research.

The study among 59 individuals from families with net worth in excess of
$25 million asked specifically how they made decisions about overall
asset allocation, investing in a specific opportunity and divesting from
a specific vehicle. Respondents said these were most frequently decided
by family advisors, family office executives and professional financial
advisors.

A professional financial advisor is used in 41% of cases for overall
asset allocation, and a family advisor or family office executive in
38%. These same non-family members also help make decisions about
specific opportunities in 44% and 35% of cases respectively, and to
divest in vehicles or companies 41% each of the time.

How investment decisions are made within families

                         
     

Overall
asset
allocation

   

Investing in a
specific
opportunity

   

Divesting from a specific
vehicle/fund/company

   

Impact
investment
strategy

Family committee     32%     29%     29%     26%

Committee that also
includes non-family
members

    29%     26%     29%     21%

Input from a
committee but family
elder has final
decision-making
authority

    15%     21%     21%     12%

Head of family (elder)
has sole decision-
making
responsibility

    21%     24%     18%     9%

Family advisor and/or
family office
executive

    38%     35%     41%     18%

Professional financial
advisors

    41%     44%     41%     24%

SOURCE: Morgan Stanley/Campden Wealth, Family Decision-Making

“The fact that ultra-high net worth individuals appear to listen more to
their financial advisors than their own family members shows the premium
placed on good, professional investment advice,” said David Bokman, Head
of Ultra-High Net Worth Resources for Morgan Stanley.

The results are contained within the newly published ‘Family
Decision-Making’ report, which examines decision-making within
ultra-high net worth families in North America. The influence of
financial advisors is a recurring theme through the findings, but is
particularly prevalent around investments.

Asked how much influence key stakeholders inside and outside the family
had on ultra-high net worths’ goals, 89% said their wealth advisors had
either a strong (50%) influence or some (39%) influence. This was higher
than any other stakeholder, inside or outside the family.

Family business strategy or partners and affiliates were the second-most
influential entity (44% strong influence and 40% some influence).
Parents were a strong influence for a third of ultra-high net worth
individuals and spouses for a quarter.

Commenting on the findings, Dominic Samuelson, Chief Executive Officer,
Campden Wealth said: “Financial Advisors play a very important role in
family decision-making, and enjoy a special – and often very select –
place at the table of these ultra-high net worth families. In seeking to
service them as best they can, Financial Advisors should look to gain as
wide an understanding into families as possible and think about their
complete needs.”

“The more that Financial Advisors can understand, the more holistic
advice they can offer, and the more families will gain from their
interactions. Financial Advisors may even wish to be explicit about
their desire to gain more knowledge into the family from the outset to
help fast-track this process,” added Mr. Bokman.

To request a copy of the Family Decision-Making report, please contact research@campdenwealth.com.

About Morgan Stanley

Morgan Stanley Private Wealth Management (PWM) is an established global
leader in wealth management, dedicated to serving ultra high net worth
individuals, families and their foundations. Founded in 1977, Morgan
Stanley PWM has been committed to helping its clients preserve and grow
their financial, family and social capital for over 30 years.

Morgan Stanley Wealth Management, a global leader, provides access to a
wide range of products and services to individuals, businesses and
institutions, including brokerage and investment advisory services,
financial and wealth planning, cash management and lending products and
services, annuities and insurance, retirement and trust services.

Morgan Stanley (NYSE:MS) is a leading global financial services firm
providing investment banking, securities, wealth management and
investment management services. With offices in more than 43 countries,
the Firm’s employees serve clients worldwide including corporations,
governments, institutions and individuals. For further information about
Morgan Stanley, please visit www.morganstanley.com.

About Campden Wealth

Campden Wealth is the leading independent provider of information,
education and networking for generational family business owners and
family offices globally in person, in print, via research and online.

Campden Research supplies market insight on key sector issues for its
client community and their advisors and suppliers. Through in-depth
studies and comprehensive methodologies, Campden Research provides
unique and proprietary data and analysis based on primary sources.

Campden Wealth also publishes the leading international business titles
CampdenFB, aimed at members of family-owned companies in at least their
second generation and CampdenFO, the international magazine for family
offices and private wealth advisors. Campden Wealth further enhanced its
international reach and community in 2011 with the acquisition of the
Institute for Private Investors (IPI), the leading membership network of
private investors in the United States, founded in 1991 and with the
establishment of Campden Family Connect PVT. Ltd a joint venture with
the Patni Family in Mumbai, India in 2015.

To learn more please visit campdenresearch.com.

Note to Editors

About the study: The data examined in this study derive from a
quantitative survey conducted from July to November 2015. The survey was
designed to elicit respondent attitudes and behaviors concerning
investment decision-making as well as provide a clear understanding of
current portfolio construction, decision-making and governance
structures within the family. The sample of respondents was derived from
Campden Wealth’s existing community of ultra-high net worth individuals
in North America. A total of 59 wealth holders engaged in the
quantitative survey, with analysis and aggregation taking place in
November and December 2015. To add context to the quantitative component
of the study, as well as to garner deeper insight into the ultra-high
net worth investor mind-set, 15 in-depth qualitative interviews with
wealth holders were conducted. For the purposes of this study,
ultra-high net worth is defined as coming from a family of net worth in
excess of $35m.

Morgan Stanley Smith Barney LLC. Member SIPC. CRC 1444208 3/2016

Contacts

Media:
Campden Wealth:
Stuart Rutherford, +44 (0) 20
3763 2806
stuartrutherford@campdenwealth.com
or
Morgan
Stanley:
Christy Jockle, 914-225-6827
christine.jockle@morganstanley.com