Half of DFMs deliver 'negative alpha' for clients, report finds

Around half of wealth manager portfolios are failing to deliver positive alpha for clients, a new report has revealed.

Research carried out by Asset Risk Consultants found that around 50% of portfolios recorded negative alpha over the past three years, and just 20% were able to deliver positive alpha in that time. Before the financial crisis in 2008, investors experienced a "golden period of relative performance", said the report, but since then investment managers have encountered "ongoing difficulties" in adding value for clients. This is at a time when wealth managers have also been adding risk to portfolios. "In response to negative real interest rates and unpredictable central bank market inte...