Investor behavior has changed dramatically amid the market rebound and signs of economic recovery, according to the 14th annual World Wealth Report released Wednesday by Merrill Lynch Global Wealth Management in conjunction with Capgemini.
"Investors are emerging from the financial crisis as more engaged, cautious and conservative," said Bertrand Lavayssiere, managing director of Global Financial Services for the Capgemini Group.
This year's report aimed to provide a comprehensive view of how wealth-management firms are adjusting to the new behavior and attitudes toward investing by high-net-worth investors.
Rather than chase performance, the study found that about 90% of investors are now remaining cautious and are easing their way into effective risk management.
And they are seeking specialized advice from firms and working closely with advisers.
About 59% of investors have regained trust in their advisers, while 56% started believing in their wealth management firm again.
In order to effectively meet the needs of the new type of investors, wealth management firms are actively seeking to incorporate emotional factors into tighter portfolio management and risk capabilities.
"Many firms are already beginning to embrace behavioral factors as part of [high net worth investors'] investing strategies and the holistic advice they provide their clients," Sallie Krawcheck, president of Global Wealth & Investment Management Bank of America, said in a press release.
