Published earlier this month, the second annual Channel Islands Wealth Management Insights 2025 report has highlighted the performance of the Channel Islands wealth management sector.

Key findings of the report include:

  • Real-term growth is slow: In absolute terms, fund levels are increasing strongly. But stripping out the uplift from inflation or rising asset prices reveals more modest growth in recent years. This underlines the need to look beyond core markets for new sources of value, differentiation and growth.
  • Private markets are changing the playing field: Offering access to alternative investments can help wealth managers to stand out from the pack and strengthen client returns. In particular, Channel Islands wealth managers said that digital assets are likely to see the greatest growth within the alternatives market.
  • Competing on cost: Cost bases across the market vary markedly, with many wealth managers operating at a breakeven point that is much lower than the industry average, enabling them to boost margins and attract customers that might otherwise fall through the net.
  • Targeting tech investment: Clients expect tech-enhanced capabilities. The big question is how to harness new technology and meet client demands, while containing what could be significant investment costs.

In response to these challenges, the report makes a number of recommendations to help wealth managers in the islands to ‘seize the moment’, including:

  • Diversifying portfolios: there are challenges and risks as wealth managers move into unfamiliar territory, but getting ahead of the pack in offering private markets investment is an opportunity to boost differentiation, performance and growth.
  • Embracing innovation: harnessing tech-powered solutions such as tokenisation offers an easy, seamless and cost-effective way to invest in a range of asset classes.
  • Taking clients on the journey: augmenting expertise with technology can help to develop a deeper understanding of client objectives, enabling wealth managers to develop personalised and high-performing solutions.