London-listed asset managers are being shunned by investors. They have significantly underperformed UK and European equity markets in recent years, with heavy outflows, high costs and fee compression strangling growth. The forthcoming round of trading updates and results is “unlikely to be sparkling”, one analyst warned this month.
Wealth managers, however – which serve individuals rather than institutions, offering tools and advice to help them invest – are faring significantly better. After a painful post-pandemic period, FTSE 250 names such as AJ Bell (AJB), IntegraFin (IHP) and Quilter (QLT) performed very well last year, and their long-term investment case is simple and compelling: regardless of the economic backdrop, everyone needs to save for later life, and the government will incentivise us to do so.
