Meeting the Need for an Absolute Return: Strategies for Success

Introduction
This Strategic Insight analyses the current trend for absolute return product and service offerings within the wealth management marketplace. It outlines the development of the trend to date, reviews a series of competitive examples focused on this investment style and concludes with an analysis of the strategic options and priorities facing players in this area.

Scope
Based on in-depth interviews with senior executives from a number of wealth managers, both global and local market
Provides a strong insight into competitive developments through detailed case studies on the absolute return approach of a handful of players
Identifies the key considerations and issues for wealth managers looking to incorporate such an approach in the future
Highlights
The first few years of the 2000s have been characterized by a magnified and explicit return to the investment approach that is now widely known as "absolute return". According to one major global wealth manager, "it is the same thing as in the 1980s, but with more sophisticated tools in terms of taking decisions and monitoring those decisions".

Datamonitor research has shown that the trend among wealth managers is predominantly focused around an asset allocation model a sensible approach considering that asset allocation is accepted to be the traditional speciality of private banks as well as being responsible for the vast majority of investment performance.

The most important task that wealth managers now have for the coming years is to manage client expectations effectively. Whichever approach wealth managers take they need to ensure that their communication with clients regarding the investment potential leaves no doubt as to the up- and downside potential.

Reasons to Purchase
Understand the current trend, how it is affecting wealth managers and what you now need to consider within your investment approach
Detailed information on your competitors' offerings, enabling you help determine the best route for your company to take
Use the strategic options and key issues to recognize the product, client and marketing considerations that need to be taken into account