£141 billion to be held in outsourced portfolio management services
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15/04/2014

Analysis by Skandia, part of Old Mutual Wealth, suggests that by the end of 2016 over £141 billion* could be placed in outsourced portfolio management services by financial advisers in the UK market.

Two thirds (66%) of financial advisers questioned by Skandia said they expect to use an outsourced portfolio management service in the next few years, with the average adviser expecting to use these services for nearly half (46%) of their clients.  Based on the predicted size of the adviser market at that time this would equate to assets in outsourced portfolio management solutions of £141 billion. This compares to around £52 billion today, an increase of over 170%. 

Further research** suggests that the type of outsourced portfolio management services most frequently used by financial advisers are Discretionary Fund Management, multi-manager funds, multi-asset funds and managed portfolio services run by a third party provider.

Nearly 63% of the financial advisers surveyed who outsource their investments, stated that they did so because it allowed them to leverage on expertise outside of their own businesses. This correlates with the 49% of advisers who believe the investment expertise of a third party provider is the most important factor when considering an outsourced solution. A further 54% stated that reducing risk to their business was another key benefit for outsourcing.

Alistair Campbell, head of investment marketing at Skandia, comments:Alistair Campbell

“With the emphasis very much on improving customer outcomes and managing business risk, constructing bespoke portfolios for every client is no longer an option for many advisers. By using an outsourced investment solution, advisers recognise they can engage the skills of investment experts to help reduce the investment risk and administration burden to their business. This in turn allows them to spend more time on providing long term financial planning to their clients.”

*based on research conducted in November 2013, surveying over 200 financial advisers

**research conducted in March 2014, surveying over 1,000 financial advisers

For more information contact

Tim Skelton-SmithOld Mutual Wealth02380 916 99807824 145 076tim.skelton-smith@omwealth.com

Notes to editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £116.5 billion in customer investments (as at 30 June 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Old Mutual Wealth Private Client Advisers; discretionary fund management business, Quilter Cheviot; and the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• Private Client Advisers to Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.