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Wealth Managers Review

Since the launch of the Wealth Managers Review in 2017, the shape of the industry has changed markedly. The most recent AUM estimate for the wealth management industry is £942bn, according to the latest stats from PIMFA, a significant increase on the £800bn reported three years ago.

M&A activity, restructurings, new regulations, fresh pressures on margins and the ever-changing needs of investors have all played their part on those movements.

Research in Finance’s Wealth Managers Review 2020 aims to help asset management companies – specifically their sales, distribution and marketing teams – to improve their understanding of the wealth management market.

It addresses how previous trends have evolved and identified the emerging themes that will shape the future of the sector.

The report will seek to answer key questions:

  • Will financial advisers continue to outsource investment management to DFMs?
  • How do fund selectors make decisions around adding funds to buy lists?
  • How are they building portfolios?
  • How has regulation and consolidation impacted how DFMs run their business?
  • Which kind of relationships do they value with asset managers?
  • Which sales teams and individuals do DFMs think are serving them well?
  • What is DFMs’ appetite for various asset classes?

Insight provided

By surveying over 200 fund selectors from a quantitative perspective and carrying out 50+ interviews on the wealth management and asset management sides, we take a look at the biggest challenges and opportunities for the players who want the edge in this competitive market.

Among the key topics in the report, we explore how the propensity for small- to medium-sized advisory firms to outsource their investment functions to discretionary fund managers has continued apace, but at the same time, we explore the alternative routes advisory businesses are taking.

Regulation has played a huge role in changing many of the processes within asset managers and discretionary fund managers, particularly fees. WMR looks at how these are being squeezed throughout the chain and the use of segregated mandates.

Additionally, we ask DFMs which sales and distribution teams are setting themselves apart in terms of the service and value they deliver and the evolution of communication and networking in a post-inducements and increasingly digital age.

We detail the research processes used by those deciding which funds make it on to buy lists, how appetite is changing for different asset classes, and the demand for more innovation and sustainable and responsible investing.

We also analyse the challenges surrounding liquidity and how the demise of Woodford Investment Management has caused so many to rethink processes.

Furthermore, we evaluate how increased levels of M&A have impacted the industry, while also delving into what the winners and losers of the future will look like.

With so many huge changes, it is crucially important that asset managers, the manufacturers for so many discretionary fund management firms, are ready to support wealth managers through these developments by making sure they have the products and service they need to operate effectively.

We hope you find the second edition of Wealth Managers Review a valuable tool in the future decision making.

The report

Wealth Managers Review 2020 is a comprehensive written report with a supporting PowerPoint summary document so that key learnings may be more easily presented and disseminated internally.

Topic coverage of the report broadly splits out between the following:

  • Business practices
  • Key trends impacting decisions
  • Investor sentiment and product preferences
  • Services and communications
  • Index of individual firm information

Business models and practices

  • The outsourcing of investment functions by advisers
  • Why some advisory firms are choosing to run portfolios in-house
  • How MPS has evolved
  • Fund selection decisions and the key influences behind these
  • The use of buy lists
  • Impact of regulation and consolidation
  • Where are firms implementing ESG

Investor Sentiment and product preferences

  • Appetite for various asset classes
  • Where DFMs are finding it difficult to allocate
  • Product innovation
  • Appeal of investment trusts
  • Use of passives
  • Key challenges on the horizon for investors

Services and communications

  • The values and relationships DFMs find most useful
  • Preferred methods of comms
  • Appeal of events and networking
  • The best sales contacts and teams
  • Where thought leadership is useful
  • DFMs’ expectations on after-care

Index of individual firm information

  • Assets under management
  • Firms’ developments and background
  • Clients and investment propositions
  • Fund selection preferences

For more information please contact Toby Finden-Crofts on 0207 104 2236 or Richard Ley on 0207 104 2239.

To express an interest in becoming a stakeholder in this ground-breaking report, please contact the team.

Research in Finance is uniquely placed to produce such a report with access to the largest database of DFMs in the UK.

First published Winter 2017.

Subscribing firms will receive 2x report copies, soft copy for internal use.

WMR Download

For more information on this ground breaking report please download the synopsis