WMA JOURNAL Issue 4 Autumn 2015
In this issue
Defence against Cybercrime The changing face of research 25 facts celebrating 25 years of the WMA Industry Statistics The importance of implementing a robust policy management programme
Issue 4 Autumn 2015
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Industry Statistics The following excerpt is taken from ComPeer’s quarterly update of the UK Wealth Management Industry report
Quarterly Update: Quarter 2 2015 The second quarter of 2015 showed less promising results than the first quarter of the year, although year on year comparisons prove more encouraging. Investment assets for Wealth Managers fell slightly by 2.1% but increased for Execution Only Stockbrokers by 2.3%, leading to an overall total investment asset value of ÂŁ732bn, a 1.3% drop on Q1. However, this is compared to a market decrease of 3.4% as measured by the FTSE WMA Balanced Index. The industry also outperformed the market year on year, (an 8% increase against 3.7%). Trade volumes fell by 3.4% last quarter, although they increased year on year by a healthy 14.2%. Commissions reduced for both Execution Only Stockbrokers and Wealth Managers (down 8.8% in total) as a result of the lower volumes and continued movement towards fee-based charging. Total revenues were down 4.9% on the previous quarter and by 0.2% year on year, one of the few key statistics to fall on a yearly basis. Profit margins also decreased for both Execution Only Stockbrokers and Wealth Managers, although Wealth Manager profit margins dropped at a greater rate. Total costs were down 1.8% quarter on quarter, as a result of improvements in efficiency and lower trade volumes. This softened the blow on profit margins of reduced total revenue across the industry.
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