UK Wealth Management - Competitive Dynamics 2019

UK Wealth Management - Competitive Dynamics 2019

Summary

The wealth management industry saw a sharp slowdown in asset growth in 2018. Individually, wealth managers saw mixed success, with the strongest growth stemming from continued merger and acquisition (M&A) activity. Market uncertainty dominated the year, with record levels of outflows resulting in several key funds being suspended and heavy losses for investors. The sentiment behind these withdrawals was linked strongly to the Brexit process. Following the UK’s eventual exit from the EU in January 2020, EU rules will continue to apply until a future trade framework is agreed between the UK and the EU - marking a degree of ongoing uncertainty. Against this backdrop, the Financial Conduct Authority (FCA) announced rules to stem future liquidity crunches, protecting investors and wealth managers alike.

This report provides an overview of the top wealth managers in the UK, based on business model and minimum investment thresholds as well as rankings based on assets under management. It explores regulations that pertain to wealth managers and offers insight into recent M&A activity, new entrants to the UK market, and divestment activity. The report also examines product and service innovations and personalized offerings.

Scope

- St. James’s Place, Barclays, and UBS Wealth Management remain the largest brands by assets under management (AUM), cumulatively accounting for just under a third of the assets managed by the top 20 wealth managers.
- Market conditions were significantly more challenging than in recent years. Annual growth slowed to just 1% in 2018 compared with 10% in 2018.
- Larger wealth managers sought growth by expanding into standalone territory, including digital advice, financial advice, and diversified wealth solutions.

Reasons to Buy

- Benchmark your market share against the top 20 UK performers.
- Understand drivers for AUM growth among leading wealth managers in the UK.
- Gain insight into M&A activity and organic growth for both new entrants and incumbents.
- Understand the growth within robo-advice services.