The WEALTHTECH Book

Wealth Managers Can Deliver Effective Client Outcomes with a Data-Driven Investment Process

By Giles Adu

Co-Founder, ClearMacro

At the heart of the wealth management industry is the mission to deliver agreed investment outcomes subject to a client’s attitude to risk. Wealth managers’ investment processes and approaches to decision-making are a significant driver of the outcomes for millions of individual savers and retirement plans. While the wealth management industry continues to grow, it is experiencing enormous pressure from increasing regulatory requirements and a low environment for returns. While industry competition is fierce, there is also an increasing threat from low-cost robo-advice. To maintain and grow market share, wealth managers need to boost portfolio returns, adapt to regulatory requirements and generate cost and scale efficiencies in their investment processes. Recent innovation allows wealth managers to reduce costs, and become more efficient at generating portfolio returns with a disciplined, systematic process. Cutting-edge applications and tools enable wealth managers to capture a broader range of opportunities, more frequently to sustain long-term portfolio returns.

The industry needs to solve the problems of efficient data sourcing, processing and visualization to address portfolio opportunities and threats in real time to sustain portfolio performance. Best practice can now incorporate a data-driven investment approach with significant systematization ...