DUBLIN--(BUSINESS WIRE)--Research and Markets has announced the addition of the "Discretionary Asset Management: HNW Demand and Drivers" report to their offering.
Globally over half of HNW investment portfolios are placed in discretionary mandates. However, the uptake of these services differs by country. While wealth managers in developed economies such as the UK and the US can attract investors to discretionary services relatively easily thanks to their established reputations, players in emerging markets have a longer way to go. Nevertheless, despite the challenging competitive environment, the penetration of mandated offerings is expected to increase, in line with most global players' business strategies.
- With 81.5% of HNW portfolios placed in discretionary services, Singapore has the highest penetration of discretionary mandates. The UK and the US follow.
- In absolute terms, China follows the US as the world's second largest market for discretionary asset management. With increasing demand for these services from HNW investors, many players are likely to look for options to enter the market.
- Lack of time and expertise are two major factors encouraging HNW clients to use the services offered by discretionary portfolio managers.
- The relatively high cost of discretionary services can deter investors and make them more willing to opt for advisory mandates.
- Although dubbed "robo-advisors," a number of digital players in Europe in fact offer discretionary investment management at competitive prices.
- A number of industry leaders, including UBS and Citi Private Bank, place higher mandate penetration at the center of their business strategies.
Specifically, the report:
- Estimates the value of HNW assets invested via discretionary mandates
- Compares HNW individuals' willingness to use discretionary services in different countries
- Identifies target client groups for discretionary asset managers
- Compares drivers for discretionary mandates between countries and regions
- Examines the client targeting strategies of discretionary portfolio managers
- Explores robo-advisors' potential to disrupt traditional discretionary asset management business
For more information about this report visit http://www.researchandmarkets.com/research/9qdzwk/discretionary