Investment Solutions Forum 2019 HK - Exclusive Insights - Harold Kim

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1. Is do-it-yourself wealth management a trend?

Video transcript

1. Is do-it-yourself wealth management a trend?

This morning we presented a short discussion about what we title “Do-It-Yourself Wealth Management,” or, maybe more appropriately, Do-It-Yourself or Do-It-Yourself with a Little Bit of Help. Essentially, what we discussed was the fact that, with the emergence and prevalence of ETFs as an investing alternative to active managers, combined with the improvements in technology that allow online platforms to offer individual managed accounts to a broad group of investors, have really provided a very differentiated and unique alternative for investors, as compared to the current incumbent providers of asset allocation device, i.e., private banks and other wealth managers. With the online platforms and the availability of ETFs, you can set up broadly diversified, liquid global asset allocation exposures that will rival, or very often do better, than what you might get in the more traditional private bank or advisory space. And so, it's really up to the product providers to improve their advisory offering so that, at the asset class level, asset managers need to do better than the low-cost ETFs that are available. And at the portfolio allocation level, private banks need to do better than a standard 60/40 type of robo advisor allocation or something that might be a little bit more dynamic.

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