An increasing number of people are managing their personal wealth through active, tailored investment management services via wealth managers and financial advisers, research from Rathbones has found.

The study also forecast that this trend was likely to continue over the next two years, as more people in an ageing UK population save for a retirement they are increasingly concerned they will not have enough resources for.

Rathbones said this suggested more money was being invested in the UK by relatively affluent people, as 46 per cent of advisers ask for a minimum portfolio of £400,000 to qualify for bespoke services.

Furthermore, 93 per cent of wealth managers and advisers who offer tailored investment management services tend to manage no more than a quarter of a client’s wealth.

All of the financial advisers surveyed said the proportion of clients’ assets they manage through a bespoke service had increased since 2023, with 77 per cent reporting an increase of up to 25 per cent.

Advisers who said they do not currently recommend bespoke investment management services expected to do so in the next four years.

All advisers predicted that this growth trajectory was set to continue between now and 2027, with 64 per cent expecting an increase of between 15 per cent and 25 per cent of clients’ assets managed through a bespoke investment management service over the next two years.

One in five (20 per cent) forecast an increase of between 5 per cent and 15 per cent, while 13 per cent expected a rise of between 25 per cent and 50 per cent.

However, all advisers stated that clients will need to have larger investment portfolios in the future to be considered for tailored services.

More than a quarter (28 per cent) said clients’ investment portfolios will need to increase by up to 15 per cent to be considered in the next two years, while 52 per cent said they will need to increase by between 15 per cent and 25 per cent.

“Bespoke investment management services offer financial advisers and wealth managers access to research capabilities and an ability to react quickly to changing market conditions and individual client needs, making them increasingly popular,” commented Rathbones head of strategic partnerships, Simon Taylor.

“With an ageing population in the UK, and people increasingly aware of the need to provide for their retirement, we’re seeing growing demand for such advice and support.

“Bespoke investment management was historically better suited to people with larger sums to invest because that invariably came with more complex tax circumstances.

"However, advisers and wealth managers are increasingly focused on personalised and changing income profiles for people across their whole period of retirement.

“This requires a more dynamic approach to structuring investment portfolios and, as part of this response, we are broadening our offerings to support both individuals and their financial advisers."

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