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November 24, 2020updated 26 Jan 2022 3:13pm

COVID-19 pandemic has encouraged a DIY approach among UK investors

By GlobalData Financial

Historically, discretionary services were the clear leaders in terms of asset distribution by mandates for UK HNW wealth. However, UK HNW investors are now becoming more hands-on with their investment styles amid the COVID-19 pandemic.

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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

Like most European countries, GlobalData’s 2020 Global Wealth Managers Survey found that discretionary mandates still lead the race for the largest percentage of UK HNW wealth at 24.8%. But they are no longer as far ahead as they once were. They edge out execution-only mandates by just 0.1 percentage points, while advisory mandates are not far behind. The real underdog is automated investment services, as this decade-old asset management style is now accounting for almost 15% of HNW wealth in the UK. The market has become significantly more diversified, and players should accommodate these varied needs to hold on to clientele.

 

covid-19 uk investors

The days when many UK investors would trust their advisor to make their investment decisions without consultation are fading away. Clients are increasing their own investment management knowledge and are becoming more prone to a DIY approach. Wealth managers need to accommodate this growing desire for control. They also must ensure relationship managers provide the necessary reassurance to retain faith in the expertise of the investment team.

Looking ahead, our data suggests that discretionary mandates will see the least growth and advisory asset management is expected to see the most growth in the future. So although clients are wanting the final say on their investment decisions, they still welcome the expertise of wealth managers when they need it. The COVID-19 pandemic has caused a very unstable financial market, so advisors will be commended for helping their clients jump over hurdles in this time.

The wealth management industry in the UK is in a transformational period. Wealth managers will come out successful if they can meet the more varied needs of their investors, whether it is providing automated investment services or supporting clients as they take the reins of their portfolios. Those that fail to adapt to shifts in investor preferences will suffer unhappy clients and lower retention rates at a time when social distancing makes getting new clients more of a challenge than usual.

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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