Plugged into
Wealth Management 2026
The performance paradox: why did 96% of investors feel confident their investments performed well, whilst 84% of wealth managers underperformed?
The performance paradox: why did 96% of investors feel confident their investments performed well, whilst 84% of wealth managers underperformed?
In 2025, developed equity markets returned 21.1%. For most investors, it felt like a good year and they had every reason to think so. A recent poll of 250 high net worth individuals found that 96% were “confident” that their investments performed well.
But confidence built on positive returns can be misleading. Our analysis of over 550 portfolios across 110 providers found that 84% of wealth managers actually underperformed against an investible risk-equivalent benchmark, with an average underperformance of 4.3%. The markets delivered strong results, but for the majority of investors, that value was quietly eroded by the very managers entrusted to grow it.
There is a significant disconnect between measured performance and investor confidence.
*If this underperformance persisted for 10 years on a £1m portfolio, it would erode over £700k of return.
Without an independent, investible risk-adjusted measurement, strong market returns create an illusion of value added.
The 2026 edition of Plugged into Wealth Management provides a data-led assessment of the industry's performance, revealing the gap between the returns investors should expect and what their portfolios actually deliver.
2025 was a good year for the markets. However, the penalty for picking the wrong manager consistently exceeded the reward for picking well.
A 4% lag can result in losing as much as twice the initial value of your investment over 20 years.
From the poll of 250 HNW individuals, only 52% of investors know what they actually paid their wealth manager. This is likely due to the numerous layers of fees and costs that compound year after year alongside the underperformance itself.
You can't control the markets, but you can control who manages your wealth and how you measure the outcome. Y TREE can provide the data on how your manager has really performed and what it means for your lifestyle, your career, and your family's future.
In 2025, developed equity markets rewarded investors with returns of 21.1%. Against this backdrop, most wealth management performance reports likely began with a reassuring summary of growth.
However, our analysis of over 550 portfolios across 110 providers reveals a persistent structural underperformance that remains invisible to most. While absolute returns were positive, the majority of wealth managers failed to add value relative to the risk their clients actually took.
