Two in three advisers and wealth managers believe there is room for improvement in their forecasting of asset class performance.
Just 32% of those questioned by researchers working on behalf of Ortec Finance said their organisation is ‘excellent’ at tracking future potential performance, including the risks of asset classes.
A further four in 10 (42%) said they are ‘good’ and one in four (25%) said their firm is ‘average’ at tracking future performance of key asset classes.
The pool of people quizzed work for firms collectively managing approximately £1.207trn.
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The researchers also found eight in 10 (84%) expect their company to invest further in new services to help forecast asset class performance over the next three years.
This need to invest in such tools is primarily being driven by client demand, Ortec’s researchers found.
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Tessa Kuijl, managing director, global wealth solutions, at Ortec Finance said: “While wealth managers and financial advisers already invest in tools and solutions to track the future potential performance of key asset classes, clients are increasingly expecting and demanding this analysis.
“It’s positive that most wealth managers are set to increase the level of investment in these areas to enhance their insight of this over the next three years.”
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