FINANCIAL SERVICES

The trend towards customisation and hyper-personalisation in asset management is set to accelerate , with a marked shift towards bespoke investment solutions .

A recent survey by Deloitte found that 76 % of asset managers expect to increase their offerings of customised products over the next three years .

Matt Ford , Co-founder and CEO at Sidekick , explains : “ We expect the shift to a more client-centric approach in the asset management industry to continue in 2025 and beyond , as high

of asset managers expect to increase their offerings of customized products over the next three years , according to a Deloitte survey net worth and mass affluent individuals increasingly demand more than off-theshelf products .”

This evolution extends beyond traditional risk profiling and portfolio matching . Matt elaborates : “ What the industry calls customisation will also continue to evolve from simply assessing investor risk profiles and matching them to suitable diversified portfolios , to hyper-personalised individual portfolios at scale enabled by technology .”

The manifestation of these tailored solutions is expected to be diverse .

“ These products will range from ESG customisation or negative screenings of popular indices , to more custom indexing , tax alpha through tax loss harvesting and efficiently managing concentrated positions ,” predicts Matt .

This shift towards hyperpersonalisation is not merely a trend but a response to changing investor demands .

As investors seek portfolios that align more closely with their specific financial goals , risk tolerances and values , asset managers are compelled to adapt their offerings .

The move towards customisation is further facilitated by advancements in technology , particularly in artificial intelligence ( AI ) and machine learning ( ML ).

Jamil Jiva , Global Head of Asset Management at Linedata , highlights the transformative potential of these technologies .

94 December 2024