Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

How wealth managers' profits have fared during the squeeze

How wealth managers' profits have fared during the squeeze

Wealth managers and execution-only stockbrokers have managed to maintain profit margins during the squeeze, according to Compeer's third quarter update.

Rather than being clipped, Compeer said wealth managers typically increased their pre-tax profit margins by 28.6%, while execution only stockbrokers saw a 43.6% rise.

This is on the back of quarter-on-quarter revenue growth, Compeer said, while the value of assets in the sector hit a new high of £515 billion.

But while assets trended upwards, trading volumes tailed off during the last three months, a trend now in its second consecutive quarter.

According to the latest data trading volumes fell from 4.71 million to 4.53 million, with collectives, CFDs and spreadbets all clocking up double-digit falls.

The Apcims Compeer Index, which tracks private client activity on the London Stock Exchange, also fell, though the drop was more marginal, from 193 to 191.

Fixed income still popular 

Compeer's quarterly update also looked at asset allocation trends within the sector.  It found that fixed income has remained a top choice for investors - a view backed by the Wealth Manager Quarterly survey - despite value making the investment case for equities look more compelling than credit.

Over the stretch looked at by Compeer the value of UK fixed interest purchases was £998 million, more than three times the value of sells.

UK equities were the most traded, though purchase content fell from 51% to 47% during 2012's third quarter, reflecting investors' cautious mood.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Investment Pulse: the highs and lows of 2014

Investment Pulse: the highs and lows of 2014

This week's Investment Pulse looks back at some of the biggest stories of the year as well as looking forward to 2015.

Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter