Wealth and asset firms expect US recession, weakened industry growth

investmentnews.com:

A dual survey of U.S. wealth management and asset management professionals shows a strong expectation of recession in the coming months.

Asset managers have a higher level of certainty of recession (72%) than wealth managers (62%) but both groups expect industry growth to be weakened to a conservative 5-8% over the next 12 months (again asset managers more so than wealth managers) compared to a more typical 8-10%.

But economic and industry growth is not the only concern among these financial services professionals, with the ongoing battle for the best talent also providing challenges for firms according to around two thirds of those polled by advisory and accounting firm Wipfli LLP, which sold its financial advisors business a year ago.

Wealth managers are more focused on new client acquisition and deepening those relationships.

But those firms are not reporting changes to their client acquisition strategies and are also lagging on talent management with many requiring employees to be in the office 5 days a week.

“Wealth management firms need to focus on targeted strategies that will help them foster long-term stability and viability,” said Paul Lally, wealth and asset management industry leader, principal at Wipfli. “In today’s uncertain economy, it’s critical for firms to adapt and constantly reassess their growth strategies.”

Wipfli suggests that wealth managers consider how workplace flexibility and benefits can enhance the new talent pipeline and ensure that their strategies for growth are aligned.

Asset managers’ focus on technology is one of the keys to their growth with three quarters of respondents citing “managing and implementing change” as the top factor driving their goal achievement.

This group is also