Set your reminders for 3:00pm on Wednesday, 13th March to join us for the next hangout!
This time, we are trying something different – a live debate! My guests for this session are Alan Smith, CEO of London based Capital Asset Management and Sebastian Dovey, Managing Partner of Scorpio-Partnership, consultants to the wealth management industry and author of the The Future Wealth Report.
Technology is changing the way people manage their money and everywhere you look, online wealth managers are springing up to challenge traditional wealth managers/adviser.
Enter Nutmeg! An online Discretionary Wealth Manager (DFM) that is changing how people manage their investments and essentially challenging traditional wealth manager! Nutmeg has raised £3.4m in venture capital funding, literally to give traditional wealth managers a run for their money! But how much of a competition are they? Should advisers be worried?
A recent report KPMG shows that the number of DIY portfolios valued between £250,000 and £1m increased by 122% between 2008 and 2010. Over the same period, number of DIY portfolios valued between £1m and £10m increased by 73%. Is this the beginning of the end for traditional wealth management as more and more people go online to manage their investments?
In this session, I’ll be asking my guests how much of a challenge or threat algorithm-based wealth management are to the traditional model. Surely there’ll be winners and losers but who will they be?
Low-cost and transparency with fees are at the heart of what services like Nutmeg do. Add to that the fantastic user experience, convenience and scalability, these are very impressive qualities that are hard for a traditional wealth manager to match.
How much damage has recent mis-selling scandals done to investors’ confidence in advisers? For example, UBS fined £9.45m by the FSA for mis-selling an investment fund from insurer AIG to its clients, can we expect people to turn to these digital/online wealth managers as alternatives?
Feel free to drop your questions in the comments below or on twitter with the tag #finalytiqhangout.
How To Join The Hangout
FinalytiQHangout is a live session on G+Hangout where I talk to thought leaders in the industry on a range of hot topics and issues that are relevant to advisers. You can see videos of previous sessions here