In today’s competitive landscape, growing a Discretionary Portfolio Management (DPM) business requires more than just astute investment strategies. It demands operational excellence, superior client service, and a scalable technological foundation. For wealth managers aiming to expand their AUM and outpace the competition, here are five essential tactics to drive sustainable growth.
Adopt a Modular, Future-Proof Architecture
The cornerstone of scalable DPM is a flexible technology stack. Moving away from rigid, monolithic systems to a modular architecture allows you to integrate best-in-class solutions seamlessly with core banking and market data systems. This agility future-proofs your operations, enabling wealth managers to adapt to new asset classes, regulations, and market opportunities without costly, time-consuming overhauls.
Automate the Investment Lifecycle
Efficiency is the engine of profitability. By implementing straight-through processing (STP) from model creation to trade execution, eliminate manual errors and free investment teams to focus on high-value analysis. Look for solutions that offer guided tailoring for rules-based customisation and automated rebalancing order management. This ensures every trade adheres to both stringent bank constraints and individual client preferences at scale.
Differentiate Through Unparalleled Transparency
Trust is the currency of wealth management. Leverage automated reporting and digital client portals to provide on-demand access to portfolio performance, holdings, and insights. This transparency demystifies the investment process, strengthens client relationships, and justifies fees—directly fostering the loyalty that leads to referrals and AUM growth.
Unify Data to Create a Single Source of Truth
Operational risk is a major barrier to growth. Disparate data from multiple custodians creates reconciliation nightmares. Employ a platform with powerful reconciliation tools and multi-custody support to create a single, accurate source of truth. This unification drastically reduces operational risks and improves reporting accuracy.
Ensure Success with a Phased, Supported Implementation
A powerful system is only as good as its adoption. A phased implementation plan, backed by expert support, is critical. A clear strategy for data migration and client onboarding ensures a smooth, confident go-live. This strategic foundation minimises business disruption and sets the stage for long-term operational success and growth.
By embracing these five tactics, wealth managers can transform their DPM offering from a service into a scalable, efficient, and highly competitive growth engine.