Ortec Finance: Wealth managers and financial advisors need to do more to track future performance

Ortec Finance: Wealth managers and financial advisors need to do more to track future performance

18 juli 2024

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Wealth managers and financial advisors need to do more to track the future performance and related uncertainty of key asset classes to properly and more effectively service their clients as they increasingly demand this type of analysis, new global research from Ortec Finance, the leading global provider of risk and return management solutions for professional investors, shows.

Only around a third (32%) questioned in its study with wealth managers and financial advisors whose organizations collectively manage approximately £1.207 trillion said their organisation is currently ‘excellent’ at tracking future potential performance of asset classes. A further four in ten (42%) say they’re ‘good’ and one in four (25%) say their organisation is ‘average’ at tracking future potential performance of key asset classes.

But the majority are looking to invest further in tools and solutions to improve. More than eight in ten (84%) say their company will increase how much they invest over the next three years in solutions to help advisors with good estimates of  key asset classes’ future performance. Around 11% think investment levels here will increase dramatically. Only 15% say the level they invest in these solutions will stay the same over the next three years compared to now.

This need to invest is being driven by clients. The main reason for investing in more tools and solutions is wealth managers’ need to service clients properly and more effectively. The second most popular reason given is because clients are increasingly demanding this type of analysis. This is followed by it being key to business growth and client retention, followed by the belief it will help to reduce costs and improve efficiency levels.

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