For well-off individuals looking to outsource the day-to-day investment of their pounds, wealth managers have long looked like the best option.
Yet for an industry driven by huge amounts of money and used by professionals ranging from entrepreneurs to technology titans, there has been surprisingly little innovation. For high-net-worth investors, using a wealth manager is rather like throwing money into a black hole – they have little idea of where it goes, or what amount is reaped in fees by the manager.
But the whisper of increased transparency – prompted by new regulation, a government focus on boosting the savings culture, and pushes from the financial watchdog – has begun to thread its way through the wood-panelled wealth managers’ offices.
While a number of technology-enabled firms such as Nutmeg have sprung up to serve average retail investors, Netwealth is aiming to steal business from London’s most prominent and luxurious advisers to the super-rich.