During market downturns, such as the current Covid-19 pandemic, high-net-worth ( HNW ) investors – those with over US$5 million in investible assets  –  have shifted their focus away from wealth accumulation towards preserving capital and tax efficiency, according to a recent report.

The report, published by Cerulli Associates, notes that more than four-fifths ( 83% ) of HNW investors say wealth preservation is the most important investment objective when working with their clients. Tax minimization ( 64% ), wealth transfer ( 61% ), and risk management ( 57% ) are also rated as very important by more than half of HNW investors.

And, while HNW clients tend to be among the most sophisticated investors, they often require a wide range of investment solutions to maintain their wealth across multiple generations.

As a result, asset managers,  providers and advisors must align their strategies with their clients’ long-term objectives­ and construct portfolios that can weather the ups and downs of market cycles.