The Latest Headlines From Across The Wealth & Asset Management Sector - July

2022-08-02 |  Leo Chancellor

Welcome to our latest newsletter, in which we shine a spotlight on the latest news and insights within the Wealth & Asset Management world.

This month, we delve into the impact of the challenging macroeconomic climate, digitalisation, and interest rate fluctuations on some of the industry’s biggest players. Plus, highlight the upcoming Consumer Duty regulations and how to capitalise on the opportunity Private Assets present.

These are our top stories…

Brewin Dolphin’s assets under management decreased by 8.2% to £45.2 billion in the last three months due to poor investment performance in the face of the challenging macroeconomic climate.

However, the firm is in the final stages of installing its new Avaloq custody and settlement system and has high net inflows signifying ongoing demand from new clients. So, the business feels sure they’re in a strong position.

Advance by Embark, Novia, and James Hay have been labelled as "digital process laggards" following a report by NextWealth. However, all three businesses are aware of the slow progress in digitising their processes and are actively working to update and replace their outdated models with more cutting-edge and effective technologies.

AJ Bell’s retail customer base grew by 9% to 418,309 over the six months ending 31st March. Despite a 2% increase in revenue during the same period, revenue per asset fell. Andy Bell, CEO, attributed it to lower interest rates and normalised customer trading activity. He stated though that recent interest rate increases have benefited their revenue margins. Given the rising cost of living, the group determined it was critical to reduce investment costs and eliminate charges.

With the FCA expected to publish full details of the new Consumer Duty regulation imminently, there’s an increasing awareness of the need for asset manager CEOs to play an active role in preparing their organisations for its introduction. Mary Wong’s Investment Week article explores the key things asset managers need to consider and highlights the more definitive expectation for asset managers to consider end outcomes for retail investors.

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Thanks for reading. If you’d like to discuss any issues relating to the newsletter that are specific to you or your company, do get in touch.