The client-advisor relationship is evolving from a “tell me where to invest” to a “let's decide how this information will affect my future” approach, SEI says in a new report.

At a time when so much information is available online, wealth managers should leverage knowledge as a competitive advantage in the battle for freshly-minted clients, findings from the first installment of the 2015 Futurewealth series suggest.

The report – entitled The Art and Science of Relationship Management – also examined the qualities that wealthy clients value in their financial relationship managers. See a related article here.

"We've examined what up-and-coming high net worth clients say they need from a relationship with their wealth management firm and relationship manager and have found that, even in an age of instantaneous, financial information at their fingertips, many high net worth investors are looking for their wealth managers to provide them with understandable guidance and how it affects their lives," said Kevin Crowe, head of solutions for the SEI Advisor Network.

"This tells us that the client-advisor relationship is evolving from a 'tell me where to invest' to a 'let's decide how this information will affect my future goal attainment' approach," Crowe said.

Indeed, it has been observed in recent time that “proactive financial management” among the global high net worth is on the rise, as wealthy individuals are increasingly hands-on with their finances - a trend which no doubt exists among those on the cusp of HNW status.

The insights suggest that in order to win new and retain current business, wealth management organizations must emphasize the value of the advice and service they can provide. After all, it has been noted that one of the main reasons that individuals employ a wealth manager is to receive unique and accurate information that can't be easily obtained elsewhere. 

“It is becoming increasingly clear that up-and-coming high net worth individuals are looking for more comprehensive information and guidance as they create their financial strategies alongside their wealth managers,” said Al Chiaradonna, senior vice president of the SEI Wealth Platform in North America.

And the opportunity is certainly clear when considering that nearly half of the world's up-and-coming wealthy survyed for the report don't believe that they have access to the guidance and information required to make informed investment decisions. 

More telling, younger emerging investors (those under the age of 40) feel it is nearly as important for their primary wealth manager to educate them on their investments (39 per cent) as it is to improve their financial situation (47 per cent). 

“Wealth managers who can fill strategic, functional roles, while guiding and educating investors, have a great opportunity to win over this demographic,” Chiaradonna said. 

The global report was released this week by Scorpio Partnership, SEI and NPG Wealth Management. The 3,113 individuals surveyed have an average net worth of $2.7 million.