Adapting to uncertainty

Adapting to uncertainty

The impact of COVID-19 on Wealth Managers in Europe.

In April 2020, BlackRock spoke with 45 Wealth Managers to learn more about the impact of the Coronavirus outbreak.

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.


An unprecedented time for Wealth Managers

Since the end of February 2020, the Coronavirus outbreak has put firms and their ability to operate to the test in an unprecedented way. By its own nature, this crisis has been different to anything that preceded it.


Wealth Managers respond to the crisis: acceleration of four key trends

The crisis accelerated pre-existing trends:

  • Fast-forwarding the digital transformation in client propositions and adviser enablement.
  • Confirming the relevance of portfolio risk management and centralised investment propositions such as discretionary portfolio management (DPM) and home-office-led advisery propositions.
  • Enhancing the focus on ESG and long-term growth trends in investments.
  • Highlighting the importance to earn the social license to operate.


Getting ready for the ‘new normal’

Preliminary discussions on “the day after tomorrow” and the shape of the recovery phase are emerging. Wealth Managers are starting to go after opportunistic investment opportunities and to rethink their business models.

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Source: A series of interviews with 45 Wealth Managers, representing a cross section of the European Wealth Management Industry. April 2020.

This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or financial product or to adopt any investment strategy.