The UK’s largest wealth management companies, and how to pick one

You might think of wealth managers as stock-pickers who build an investment portfolio and occasionally monitor its performance – which is why many may question whether it’s actually worth paying for. 

But the most effective wealth manager will do far more than this, by helping their clients plan for retirement, sidestep inheritance tax and navigate the cost of major life events. 

Emma Watson, of wealth manager Rathbones, said: “Any wealth manager worth their salt will also help you review your plan over the years, making changes where necessary as your career, goals or family changes.”

‘Wealth manager’ is a term more often reserved for advisers who work with high-net-worth individuals. In many cases, within these firms, there will be a financial planner and an investment manager working together for you, Ms Watson said.

But, if you’re not already working with a wealth manager, it can be hard to know how to go about finding one – let alone work out which is the best one for you. We’ve spoken to the experts to help demystify the process.

How to choose a wealth manager

In 2021, there were 5,118 financial advice firms in the UK, according to the latest data from the Financial Conduct Authority. The vast majority of financial firms have fewer than five advisers, and nearly half are run by a one-man band. 

While some people prefer small, independent firms, others like the security of going with large, established brands – many of which operate a restricted model, promoting funds and other products that they also manage. 

Stephen McMahon, of Asset Risk Consultants, which tracks the performance of wealth managers, said: “Selecting a wealth manager is a long-term decision, much like buying a house. You don’t want to have to change your wealth manager that often as it’s time-consuming and potentially costly.” 

Often, people work with their adviser for decades and few ever switch. So it is worth doing some due diligence to work out if the firm you are considering really is the one for you.  

The key is making a choice based on which kind of firm best suits your needs. Karen Barrett, of Unbiased.co.uk, a financial adviser search tool, said: “Just because larger firms typically have more scale and resource to absorb operating costs, it doesn’t always mean you’ll pay less, or your money is more secure. And small firms aren’t the only ones that offer bespoke services.”

The platform “findawealthmanager.co.uk” could be useful while you’re assessing your options. It only represents firms that have been in business for at least five years, and manage at least £500m in assets. Lee Goggin said he founded the business in 2012 after looking for a wealth manager himself and finding it almost impossible to make sense of the industry. “I thought as I was having problems, then other people must be, too.” 

Ultimately, there are three key metrics you need to consider: fees, performance and service. 

It can be difficult to work out how much you will pay, thanks to layers of charges for portfolio management, and the underlying funds themselves. What’s more, these fees are sometimes buried deep within the firm’s brochures. Therefore, it’s worth getting a quote from multiple wealth managers to make sure you are getting the best value for money.

Ms Barrett said: “As most wealth managers offer an initial consultation free of charge, it can be worth meeting with several firms of various shapes, sizes and types, and selecting the one you feel most comfortable and confident working with.”

In terms of performance, Mr McMahon said you should not be afraid to ask the manager for their historical performance track record. “While this may be a daunting request for the uninitiated, remember that this is the crux of the service being offered. If the wealth manager cannot explain their performance data to you in a way that makes sense, this may not be the advisor for you.”

The ARC Indices collect the performance of over 350,000 investment portfolios, supplied by more than 140 investment managers to establish the actual returns being seen by real clients. They show that moderately risky portfolios offered by wealth managers have generally returned 65pc for investors over 10 years. 

But Mr Goggin said not to underestimate the importance of another intangible factor - whether you feel you could build a trusted relationship with your adviser: “You have to ask yourself: can I have a difficult conversation with this person?” 

Below are the top wealth managers in the country in terms of assets under management. Remember that the biggest players may not necessarily be the best firms for you. 

St James’s Place

Client funds: £148bn

St James’s Place is the largest wealth manager in the UK. Founded in 1991, it’s still a relatively young player in the wealth management industry, where many firms have hundreds of years of history.

Suitable for those with portfolios of at least £50,000, there is a 4.5pc initial advice fee, 0.5pc fee for ongoing advice, and an early repayment charge of 1pc if you encash your investment within six years. 

Cazenove Capital 

Client funds: £76.3bn

Founded in 1804, Cazenove Capital merged with the wealth management arm of Schroders in 2013.

Annual management charges vary depending on the type of service you opt for, and how much you invest. Someone with a £1m portfolio – the minimum required – going bespoke comes with a 1pc annual management charge, or 0.5pc for its unitised service. There’s also a 0.5pc underlying fund cost, and dealing fees of 0.375pc. 

The charge reduces on a sliding scale for larger portfolios.

Rathbones

Client funds: £58.9bn 

Rathbones recently announced a merger with rival wealth manager Investec, which Rathbones said will give it a broader research capability and enhance its service. However, the merger raises some questions over whether clients could see some disruption in future. 

Rathbones charges 1.2pc on the first £250,000, 1pc on the next £500,000 and 0.75pc on the next £750,000, but these fees could change once the merger is complete. It requires a minimum portfolio of £100,000.

Evelyn Partners

Client funds: £53bn

Evelyn Partners – previously Tilney Smith & Williamson – is another firm with a long history, with roots going back to 1836. It currently has about 250 financial planners and 308 investment managers. 

It charges an annual management charge of 0.7pc, which reduces on a sliding scale for larger portfolios. There’s also a 0.2pc custody fee, and underlying fee charges that range between 0.4pc to 0.9pc. Based on a portfolio of £500,000, the total cost would be between 1.5pc to 1.8pc. It takes on clients with a minimum portfolio of £50,000.

RBC Brewin Dolphin 

Client funds: £51.7bn 

RBC Brewin Dolphin says it has over 300 investment professionals and more than 100 qualified advisers. 

Clients must have a minimum portfolio of £250,000. It charges an annual service fee of 0.7pc, with additional charges for funds that vary between 0.09pc and 0.7pc. 

This article was first published on April 28 2023 and is kept updated with the latest information.