The following excerpt is taken from ComPeer’s quarterly update of the UK Wealth Management Industry report
Quarterly Update: Quarter 3 2016
It has been an eventful year in 2016 so far, though the data is holding up quite well.
Brexit and Trump had previously been seen as almost impossible outcomes, yet both happened.
Despite this, asset values increased by 6.7%, dragging revenues up with them, but only by 1.7%. Asset and revenue increases versus the same quarter last year were more aligned, each moving up by over 11%, slightly behind the 14.5% move in the WMA Private Investor Balanced Index.
On another positive note, Execution Only Stockbrokers maintained consistent cost levels quarter on quarter, whilst Wealth Managers reduced costs, cutting back staff. Both firm types therefore reported improvements in pre-tax profit margins.
Initial indications are also positive for Q3, with trade volumes staying strong in July and August.
Once again the Wealth Management industry displays its resilience against multiple challenges.
|Current Quarter||Previous Quarter||% Change||Same Quarter in Previous Years||% Change|
|Investment Assets (£billion)||814||762||6.7%||727||11.9%|
|Client Trades* (000s)||7,010||6,921||1.3%||6,184||13.4%|
|Retail Market Bargains (000s)||3,509||3,425||2.4%||2,799||25.4%|
|Total Revenues (£million)||1,536||1,510||1.7%||1,380||11.3%|
|FTSE/WMA Balanced Index||3,915||3,721||5.2%||3,421||14.5%|
* participating firms only
1. Investment Assets and Revenue are for the total market, based on extrapolated quarterly survey participant data. Participants account for over 58% of total market assets and 63% of total market revenue. Client trades represent participating firms only. Retail market bargains are for UK Retail Stockbrokers.
With thanks to ComPeer limited: www.compeer.co.uk