Amid accelerating disruptions, wealth management is in the midst of a turnaround. The industry enters 2021 with record-high client assets, strong pretax margins, and robust growth in both self-directed and advised investment accounts. But these positive trends mask a number of challenges, including lack of cost discipline, competition from new entrants, and an aging and shrinking advisor force.URL :theinvestorscentre.co.uk

To accelerate growth, successful firms adopt bold, innovative strategies – such as new operating models and new compensation structures – that enable them to capture and harness client demand. They also regularly reallocate resources, closing the loop between visionary strategic intent and effective execution.

Wealth Management Strategies for Growth: Maximising Your Assets

As the industry recovers from COVID-19, wealth managers must be ready to respond to evolving client needs and expectations. This includes providing access to alternative investments (e.g., private markets and digital assets), and expanding the role of robo-advisers to provide a more seamless client experience.

In affluent client segments, the balance of direct investment and human advice is shifting to favor the latter. To foster deep relationships with clients and prevent channel cannibalization, wealth managers must be able to offer both direct brokerage and advisory platforms with an integrated experience.

For high-net-worth individuals, wealth management strategies should strike a delicate balance between growth — ensuring that wealth outpaces inflation — and preservation — safeguarding assets against market volatility and preserving liquidity for future needs. In addition to asset allocation, this often involves tax efficiency strategies such as using tax-deferred retirement accounts and offshore trusts, as well as philanthropic planning services like donor-advised funds.