Wealth managers face a combination of issues as global markets enter yet another period of uncertainty while their clients demand sustainable returns – so how are they meeting these challenges?
Our 2022 Wealth Management Survey, which canvassed the views of providers all around the world, found a push into alternative and private markets is high on our investors’ agendas as a way to generate new returns along with a focus on new approaches to sustainability. However, paramount to the majority of respondents was a commitment to raising service levels to clients. Find out how wealth managers around the world are gearing up to the next step on their client and growth journey.
believe diversifying away from traditional asset classes is their main investment opportunity.
say search for better yields or enhanced investment returns as the main reason for making allocations to illiquid assets.
say their priority over the next two years is to improve client experience.
of respondents believe strengthening their exposure to ESG investments will enhance opportunities to generate active returns.
Actions investors can take
57% believe diversifying away from traditional asset classes is their main investment opportunity.
- Review how the assets in your client portfolios are likely to perform in a period of sustained high inflation. Which asset classes offer protection against inflation?
- Consider blending assets that are likely to perform well in an environment of rising interest rates as central banks seek to rein in inflation.
85% say search for better yields or enhanced investment returns as the main reason for making allocations to illiquid assets.
- Determine the private markets allocations most appropriate for client portfolios, compare potential benefits against client objectives, including liquidity.
- Consider the benefits and drawbacks of different private markets assets and how they can improve diversification and potentially reduce risk.
78% say their priority over the next two years is to improve client experience.
- Review your operational framework regularly to ensure it continues to be fit for purpose and supports your client service objectives.
- Regularly review your third-party providers to ensure they continue to meet your needs and are offering value for money.
Only 20% of respondents believe strengthening their exposure to ESG investments will enhance opportunities to generate active return.
- Use data and insights that provide evidence of meeting sustainability commitments for your clients and for regulators.
- Improve transparency and provide clients with a clear view of your investment process and the holdings in your portfolios.