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  1. Wealth
July 21, 2023

What is wealth management?

What do wealth managers do and how can they help HNW individuals maximise the efficiency of their investments?

By Will Wainewright

Making money is often the easy part for members of the financial elite — effective growth, preservation and management of wealth can be the harder part.

However wealth has been generated, be it through fine wines, real estate deals or watches, many innovators are comfortable in their own industry but unsure about the world of finance.

That’s where the wealth management industry comes in.

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[See also: The future of wealth management: will only the big fish survive?]

What do wealth managers do?

For high-net-worth (HNW) individuals with investable assets of £1 million or more, a wealth manager can help to organise their financial affairs and maximise the efficiency of their investments.

Wealth managers can be found in many of the centuries-old private banks located in quieter corners of the City, Mayfair or various Swiss cantons. Their scale varies: some wealth managers run independently, even as one-person operations, while some high street banks offer the services too.

The most effective wealth managers for high-net-worth individuals don’t just handle a client’s investments — they develop a broader wealth strategy tailored to their individual needs and financial situation.

A laptop showing a financial investment graph aboard a private jet
Some clients will ask for certain weightings of investments tailored to interests or passions / Image: Shutterstock

The greater the wealth, the more complex the offering tends to be. But almost all clients are assisted with their investment portfolio, the core service provided by wealth managers.

Client input can be minimal — wealth managers will just be advised on desired return, risk appetite, liquidity needs and time horizon, and then have total freedom to invest the portfolio in different asset classes, from equities and fixed-income to alternatives like hedge funds and private equity.

Some clients will be more prescriptive — asking for certain weightings of investments tailored to interests or passions, from education in Africa to fast cars, and often ethical criteria, like a ban on arms stocks or a weighting towards eco products.

[See also: ‘My father’s succession planning took two decades – now I help other wealthy families’]

Leading UK wealth managers

Here is a list of some of the UK’s largest wealth managers. They all feature in the Spear’s 500, the indispensable guide to top private client advisers, wealth managers, lawyers and service providers to high-net-worth individuals (HNWI). 

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The website allows users to search and filter Spear’s database for various attributes, making it easier than ever to find the right private client adviser for their specific requirements.

  • Cannacord Genuity Wealth Management. Core wealth management services include portfolio management, broking services and wealth planning. Managed £33.2 billion in assets at the end of 2022. 
  • Charles Stanley. Investment Management, financial planning and central financial services. Part of Raymond James.
  • Close Brothers. Financial advice and investment service, and bespoke Investment management service. £15.3 billion under management (end-July 2022).
  • Evelyn Partners. Wealth management and professional services. £54.4 billion under management (March 2023).
  • JM Finn. Personalised investment management service. Manages £10.3 billion (end-2022).
  • Rathbones. Individual investment and wealth management services. £60.9 billion under management at end of March 2023.
  • RBC Brewin Dolphin. Wealth management services. Managed £31.4 billion in discretionary assets, end March 2023.

As this list indicates, a wave of consolidation has hit the UK’s wealth management market, with RBC’s takeover of Brewin Dolphin, Raymond James buying Charles Stanley and Rathbones agreeing to buy rival Investec Wealth & Investment UK among the recent high-profile deals.

How do wealth management fees work?

Wealth manager fees vary for active funds, with an average of 1% of assets under management per year, but fluctuates based on the provider and the extent of administrative, trading and other costs added. It can be up to 3%.

This table shows recent fee levels at different wealth managers, which vary by size of portfolio.

How do insiders see the industry? For more insights into wealth management, click here

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  • Business owner/co-owner
  • CEO
  • COO
  • CFO
  • CTO
  • Chairperson
  • Non-Exec Director
  • Other C-Suite
  • Managing Director
  • President/Partner
  • Senior Executive/SVP or Corporate VP or equivalent
  • Director or equivalent
  • Group or Senior Manager
  • Head of Department/Function
  • Manager
  • Non-manager
  • Retired
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
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