'Demand for advisory managers to decline sharply' - Charles Stanley CEO

'Not what clients want'

Beth Brearley
clock • 2 min read

Advisory investment management is "in long-term decline" and will only comprise a minimal part of the wealth management industry within the next decade, according to Charles Stanley CEO Paul Abberley.

In its results for the second half of 2019, Charles Stanley said it had seen a shift towards its discretionary service, where funds under management and administration (FuMA) grew 7.3% to £13.2bn, representing 53% of total FuMA. Meanwhile, the "lower margin" advisory managed and advisory dealing services were down 5.6% and flat, respectively. Execution-only increased by 4.8% with Charles Stanley Direct up 12.4%. While Charles Stanley's chief financial officer Ben Money-Coutts said the firm would "continue to support" the advisory managed and advisory dealing services, he anticipated t...

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