Advisory services go high profile

The last financial year has left wealth managers with a lot to ponder over the Christmas break. Didier Pitton, product marketing director at Odyssey Financial Technologies, looks at winning business models for 2009 – and argues that private bankers should consider revisiting the way they provide investment advice

As private wealth management firms feel the impact of the dislocation in financial markets, investment profiling has become essential to the provision of investment advisory services, helping advisers meet regulatory obligations, manage risk and ultimately increase revenues.

This year private investors and wealth managers have faced an unprecedented challenge. Private wealth management revenues have declined and the value of assets under management has fallen due to the negative performance of some investments.

Attracting and retaining clients has become increasingly tough. Clients are paying greater attention to their investments due to market volatility and are more demanding than ever. There is a huge appetite for information on risk and a flight to safety with investors taking their business to more conservative financial institutions. In addition, the trend towards holistic advice by a trusted adviser has taken a knock. Clients have lost confidence in single providers and are spreading their risk with a larger number of financial institutions.
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