Wealth managers and family offices are set to increase outsourcing and widen their investment focus as economic and geopolitical risks continue to rise, according to Ocorian.

The service provider’s survey included asset managers working in alternatives, family offices, and wealth managers, and found that 52 per cent had already increased their areas of focus for investments in an effort to mitigate economic and geopolitical risks.

Furthermore, almost half (49 per cent) had outsourced more to third parties, as they look to benefit from the expertise, knowledge, and scale to deal with the ever-evolving landscape.

Ocorian also found that 60 per cent were planning to step up outsourcing more generally over the next 18 months.

Nearly half (48 per cent) expected to increase investment in their business over the next 18 months, with 34 per cent planning to increase merger & acquisition (M&A) activity and 23 per cent set to diversify into new geographies and sectors.

However, 26 per cent of respondents were planning to reduce their levels of investment and M&A activity, which Ocorian highlighted as evidence that sentiment was still divided amongst firms.

“Rising geopolitical and economic tensions have posed problems for companies worldwide to solve, and key to that has been seeking support from third-party specialists and diversifying their investment focus,” stated Ocorian global head of fund solutions, Charlotte Cruickshank.

“It is clear that outsourcing of more operations and working with more specialist third parties will continue to trend over the next 18 months as companies look to ensure they are protected as much as possible from the latest economic and geopolitical issues which have a significant impact on decision making.”

---