Rise in personal wealth actively managed by financial advisers gathers pace
More people are managing their personal wealth through active, bespoke investment management services offered by financial advisers, and this looks set to grow over the next two years, according to new research from Rathbones, a leading UK wealth and asset management firm.
The finding appears to reflect the efforts of increasing numbers of people across an ageing UK population to save for later life, many of whom have real and mounting concern they may not have enough resources or make the right decisions to live well in retirement, the company said.
The study suggests more money is being invested in the UK and by relatively affluent people, since almost half (46%) of advisers ask for a minimum portfolio of £400,000 to qualify for bespoke services. Moreover, over nine in ten (93%) wealth managers and financial advisers who offer a bespoke investment management service typically use it to manage no more than a quarter of a client’s wealth.
All advisers contacted said the percentage of clients’ assets they manage through a bespoke investment management service has increased since 2023, with the majority (77%) reporting an increase of up to 25%. Those advisers who don’t currently recommend bespoke investment management services expect to do so in the next four years.
Simon Taylor, Head of Strategic Partnerships at Rathbones, said: ““Bespoke investment management services offer financial advisers and wealth managers access to research capabilities and an ability to react quickly to changing market conditions and individual client needs, making them increasingly popular. With an ageing population in the UK, and people increasingly aware of the need to provide for their retirement, we’re seeing growing demand for such advice and support.”
This growth trajectory over the last two years is only set to continue with all advisers surveyed saying they predict a further increase in the percentage of clients’ assets managed through a bespoke investment management service between now and 2027. One in five (20%) expect an increase of between 5% and 15% of clients’ assets managed through a bespoke investment management service over the next two years. Around three in five (64%) expect an increase of between 15% and 25% and around one in eight (13%) advisers expect an increase of between 25% and 50%.
Whilst nearly half (46%) of advisers say clients need a portfolio of at least £400,000 to qualify for bespoke services, around one in ten (9%) say they would offer a bespoke investment management service to clients with between £250,000 and £300,000 in their investment portfolio.
All advisers say clients will need to have a bigger investment portfolio in the future to be considered for a bespoke service. Almost three in ten (28%) advisers say clients’ investment portfolios will need to increase by up to 15% to be considered in the next two years, whilst over half (52%) say they will need to increase by between 15% and 25%.
“Bespoke investment management was historically better suited to people with larger sums to invest because that invariably came with more complex tax circumstances," Simon Taylor, Head of Strategic Partnerships at Rathbones added. "However, advisers and wealth managers are increasingly focused on personalised and changing income profiles for people across their whole period of retirement. This requires a more dynamic approach to structuring investment portfolios and, as part of this response, we are broadening our offerings to support both individuals and their financial advisers."
Rathbones’ research is supported by a recent Financial Lives Survey undertaken by the industry regulator, The Financial Conduct Authority in 2024. This showed the number of people saving into pensions rose by 5 million between 2017 and 2024 to 31.6 million, to 58% of all adults, from 26m and 51% of all adults in 2017. Further, due to population ageing, the number of people drawing on pension income rose from 19% to 24% over the same period, fuelling uncertainty over how long the money will last and how best to manage it: an issue, the FCA notes, of concern to over half all adults over age 54.
Following its Thematic Review of Retirement Income Advice in 2023, the FCA last year asked financial advice firms to review their processes when providing retirement income advice to people coming up to and entering retirement. This followed findings by the regulator that some firms operated in a way unlikely to lead to good customer outcomes by not considering a sustainable level of income to support retirement and some instances of firms not providing the right information to customers.
Notes to editors:
Note 1: Source: Financial Lives 2024 Survey, Financial Conduct Authority
Note 2: Rathbones commissioned independent research agency Pure Profile to interview 100 UK IFAs and financial planners including 75 who currently offer bespoke investment management/discretionary fund management services
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Capital at risk. The value of investments and the income from them can go down as well as up and you may not get what you originally invested. Past performance is not a reliable indicator of future performance. The information contained in this release is based on our current understanding of HMRC tax regulations in the UK. Tax treatment depends on your individual circumstances and may be subject to change in the future. This information should not be taken as financial advice or recommendation. The registered address of Rathbones Group Plc is 30 Gresham Street, London EC2V 7QN.
For further information, please contact:
Tessa Curtis
Director of Communications & Corporate Affairs
tessa.curtis@rathbones.com
07833 346 238
Perception A
Phil Anderson
phil@perceptiona.com
07767 491519
About Rathbones
Rathbones Group Plc (Rathbones), through its subsidiaries, is one of the UK’s leading providers of investment management services for individuals, charities, trustees and professional partners. This includes discretionary investment management, fund management, tax planning, trust and company management, financial advice and banking services. Rathbones manages £104.1 billion of assets (as of 31 March 2025), of which £15.4 billion is managed by Rathbones Asset Management Limited (as of 31 March 2025). Rathbones has over 3,500 people across UK locations and the Channel Islands.