The head of global solutions for Allianz Global Investors said: “With low yields on sovereign bonds and squeezed risk budgets, clients are challenged and are rethinking their asset allocation strategies.
“They look for more than managing one specific asset class against a benchmark. We clearly see demand for holistic advice and solutions that range from managing the liability side to regulatory risk reporting.”
This meant that for wealth managers and asset managers looking after client portfolios, their future business success will largely depend on their ability to help advisers’ clients in making capital market risk work for them in what Mr Ratra called “a smart way and mindful of their respective regulatory constraints”.
His comments came as research conducted by Allianz Global Investors found that the 400 largest institutional investors were worried about long-term risks, especially regulation across the globe.
According to the research 73 per cent of the survey respondents said that “regulation comes with a price”.
50% - the proportion of investors who expect policy to be less favourable within three years
2.3% - the average net effect of regulation on investment performance in Europe
34% - those worried about capital controls
31% - those worried about investment requirements
27% - those who believe political and regulatory changes will affect ability to meet investment targets for clients.
Dennis Hall, chief executive and chartered financial planner for London-based Yellowtail Financial Planners, said: “The more complicated that wealth managers make the process appear to investors and advisers, the more likely they will see more advisers coming to them for investment solutions.
“The firms with the greatest valuation and scale, and whose fees never come into question are those who like to have the clients’ money close to them.”