Top

A key goal for wealth managers in Asia should include delivering sustainable performance but in a way that helps position and protect investors’ portfolios against the chance of any correction or digital disruption.

This is especially important against a backdrop of a successful run in the markets since mid to late-2016, continuing into the first quarter of 2017.

So with most wealth management firms and their clients doing well during this period, where do they go from here?

This is an ever-more pointed question given the efforts by robo-advisers and other emerging platforms to challenge the traditional investment process and distribution channels.

It relies, however, on several key areas in which the market needs to evolve. 

For example, most clients still believe in market timing, agreed speakers, with an estimate that probably only about 20% properly understand asset allocation.

Yet at the same time, there are various tactical plays for advisers to discuss with their clients in the coming months, based on market outlook and investment sentiment.

More broadly in providing – and justifying – value to clients, there has to be more of a concerted effort by institutions to help clients tally all the charges they incur to ensure there is no lingering distrust.

The flurry of activity around digital platforms makes this pressing. The inevitability of greater price competition from new entrants will lead to the increasing use of algorithms along with more structured data.