The Top Trends in Wealth Management
The traditional wealth management model is under pressure from digitization and robo-advisors. How should wealth managers respond? Below, we list the top papers of 2018 to date, providing analysis and advice across the wealth management marketplace.
Aside from business strategy, other papers provide insight into the risk tolerance of clients, fund manager selection, digitization strategies and the state of family offices.
Risk Profiling: Insights for Private Wealth (CFA Institute Research Foundation)
This CFA Institute Research Foundation brief looks at our knowledge of risk profiling and the difficulty in identifying a retail or HNW investor's individual risk profile.
Global Wealth Managers - Dare to be different (Oliver Wyman, 2018)
In order to address structural headwinds in 2018 and beyond, wealth managers need to pull tactical and strategic levers at their disposal, while also daring to be different.
Robo-advice isn’t a hype that will go away (Robeco, May 2017)
Robeco peers into the pros and cons of robo-advice - on the one hand, increasing access to the low-wealth and mass-affluent market, but on the other, having more limited offerings and dressing down the traditional advisory model.
21st CEO Survey: Key findings from the Asset and Wealth Management Industry (PwC)
PwC's 21st CEO Survey interviews 126 CEOs from the asset and wealth management industry. Most express optimism regarding growth expectations, despite the challenges they currently face.
Passive Investing: Reshaping the Global Investment Landscape (DWS/Create, 2018)
(For compliance reasons, this paper is only accessible in the United Kingdom)
This DWS AM and Create-Research report surveys institutional investors about their views on passive funds and passive vs active investing.
Our #1 Challenge: Retirement Insecurity (Financial Analysts Journal, 2018)
Widespread insecurity about retirement exists amongst defined contribution retirement plan participants, especially for those participants outside of the top third in terms of economic affluence.
Trends in the Expenses and Fees of Funds (ICI, 2018)
This paper by the Investment Company Institute details trends in the expenses and fees of investment funds. An analysis of long-term mutual funds reveals that expense ratios have significantly declined over the past 20 years.
Cheaper is Not Better: The Superior Performance of High-Fee Mutual Funds
This study shows that, after adjusting for exposure to investment and profitability factors, before taking into account expenses, high fee funds actually outperform low fee funds, and after fees they perform equally as well.
Correcting for Survivorship Bias in Investment Product Universes (JOIM, 2018)
The authors highlight a specific technique that can be used to correct for survivorship bias within return distributions for investment product universes.
Looking Beyond Performance During Manager Selection (eVestment Blog)
How much credence should be given to managers with good track records during the manager selection process? eVestment investigates to what extent past performance predicts future results within their manager database.
Does Past Performance Matter? (S&P Dow Jones Indices, Jul 2018)
It is said that 'past performance does not predict future results.' The S&P Persistence Scorecard evaluates what percentage of top performing managers manage to actually remain at the top.
Sink or Swim: Wealth management can't afford to miss the digital wave (PwC, 2018)
How is the rise of technology set to impact the wealth management industry over the next few years? PwC looks into technological trends that could affect key facets of this industry.
Digitisation of Asset and Wealth Management: Promise and Pitfalls (CREATE-Research)
The authors describe key digitisation trends in the asset and wealth management industry, among them the structural drivers of technological change, the pace of adoption among asset managers, and more.
2018 Investment Company Fact Book (ICI)
This detailed report by the Investment Company Institute (over 300 pages) provides a wealth of information on investor characteristics within the context of market developments. A must read!
Digital advice raises profits for investment services industry (Pitchbook, 2018)
This report examines the wealth management industry, with a view to understanding whether robo-advice encroaches on traditional business models and also the approximate AUM needed for robo-advisors to be profitable.
Investment Offerings and Pricing in a Post-MiFID II World (Deloitte, 2018)
The introduction of MiFID II regulation has prompted many private banks to review their offerings and make necessary adjustments in order to adapt to the ever-changing economic and regulatory environment.
Technology and Operations Trends in the Wealth Management Industry (Advent, 2018)
Based on a global survey of wealth managers, WealthBriefing reviews key fintech developments and operational issues facing the industry.