Source: Date: Updated: |
TheBahamasInvestor.com
Tuesday, August 2, 2011 Tuesday, August 2, 2011 |
The HNW Asset Allocator III report is the third in a series of semi-annual reports by Scorpio Partnership, the London-based wealth management consultancy firm. The research, which tracks asset allocation trends in the global wealth management industry, was conducted in partnership with LPEQ, the listed private equity association.
This most recent report is based on results captured from 22 private wealth institutions, which collectively hold $5.7 trillion in private client assets. This is equivalent to approximately 33 per cent of all private client assets managed by wealth management firms worldwide.
The research was conducted between April and June 2011, with the cooperation of senior investment professionals at each firm. The sample group included private banks, universal banks, private client asset managers, single- and multi-family offices. The research was carried out using an online survey.
The report is focused on understanding the way in which these institutions invest the assets that they manage on behalf of their private clients and the trends which have developed since the last phase of research in 2009, when financial institutions emerged from the shock of the financial crisis.
Key findings of the report include:
- 62 per cent of client assets are managed in discretionary mandates
- 5 per cent of client assets are managed on an execution-only basis
- 51 per cent of client portfolios are managed as balanced mandates
- Less than half of the investment products included in client portfolios are sourced internally
- Equity allocation has increased substantially across all portfolios with a jump of 16 per cent in aggressive portfolios since Q2, 2009
- Wealth managers are also turning their attention to growth markets as a potential source of investment returns
- Replacing the fixed income and cash weightings, many firms are increasing their exposure to alternative investments.
For more information download a summary PDF here or visit scorpiopartnership.com