Thursday, 12 January 2017

High Net Worth Or High Income Buy Into Discretionary Asset Management (DFM)

Financial services research house Verdict Financial have released the latest research that survey high net worth investors in 17 countries, as part of the 2016 Global Wealth Managers Survey. The findings showed 52% of their investable assets are managed on a discretionary basis. Having said this, the level of interest in discretionary does vary significantly between different markets.

High net worth individuals in Singapore, the UK and the US had an average of 70% of their portfolios in discretionary mandates. These were the highest figures of the 17 markets, leaving the assumption that high net worth in developed markets have more interest in discretionary services.
Another conclusion of the survey was that discretionary services were a good match for clients lacking the time or expertise to manage their own investments. Robo advisers also appeared to be gaining in acceptance with high net worth - not just with self-directed investors or those who prefer to "do it themselves".
Some institutions and advisory firms are offering Robo services including discretionary investment management. They have transparent and lower fee structures which appeals to the price sensitive or those with simple needs.

Many established wealth managers are trying to leverage their relationships by increasingly introducing discretionary services, as they have a higher margin than advisory only.
For more information on discretionary and advisory services contact the Just Service Group at or refer to our website
Source: International Adviser December 2016

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