Advisers must invest in tools for better asset class performance tracking
Wealth managers and advisers must do more to track the future performance of asset classes, according to Ortec Finance.
Research by the risk and return management solution provider found only 32 per cent of wealth managers and advisers said their organisations were currently “excellent” at tracking future potential performance of asset classes.
A further 42 per cent said they were “good” and 25 per cent said their organisation was “average”.
According to Ortec Finance, the majority of respondents said their firms were looking to invest further in tools and solutions to improve this.
Some 84 per cent said their firm will increase how much they invest over the next three years in solutions to help advisers with good estimates of key asset classes’ future performance.
While 11 per cent said they thought investment levels in this area would increase dramatically.
The need to invest in these solutions is being drive by clients, according to the provider.
It said: “The main reason for investing in more tools and solutions is wealth managers’ need to service clients properly and more effectively. The second most popular reason given is because clients are increasingly demanding this type of analysis.”
Wealth managers and advisers also believed it was key to business growth and client retention, followed by the belief it will help to reduce costs and improve efficiency levels.
Tessa Kuijl, managing director global wealth solutions at Ortec Finance, added: “While wealth managers and financial advisers already invest in tools and solutions to track the future potential performance of key asset classes, clients are increasingly expecting and demanding this analysis.
“It’s positive that most wealth managers are set to increase the level of investment in these areas to enhance their insight of this over the next three years.”
alina.khan@ft.com
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