This year’s FT Wealth Management report features a number of articles about the state of the industry, but opens by challenging investors as to whether it’s time to find a new wealth manager.
With the market turmoil of 2022 and enduring inflation, the expectation is that more investors require personalised advice but don’t necessarily know where to get it. Hugo Bedford, CEO of JM Finn is quoted in the article as saying: “When you get a challenging environment in the markets, it triggers people to reassess.” He also referenced the fact that clients appreciate an investment manager with an explanation, suggesting that it is times like these when the value of a trusted, one-to-one relationship can really help.
The article also suggests that the investment outlook remains “tough”, goes into the challenges of generational transfer of wealth and the growing role women are playing in the management of family wealth, with various findings suggesting that there are an increasing number of wealthy female investors not getting the service they want from the wealth management community.
The question of scale is also covered, with figures suggesting that larger firms are growing faster than smaller rivals, thanks to organic expansion and takeovers. This increase in corporate activity over the last few years brings us back to the quote in the FT article: that investors want to have an explanation when times are tough – as companies seek scale, the risk that client service suffers is very real for many clients.
