Journal of Asset Management

, Volume 14, Issue 3, pp 162–181

Asset allocation in private wealth management: Theory versus practice

Original Article

DOI: 10.1057/jam.2013.14

Cite this article as:
Schröder, D. J Asset Manag (2013) 14: 162. doi:10.1057/jam.2013.14


This study analyzes the responses to a representative survey of wealth advisors on private wealth management practices, and compares the advisors’ views with academic research in household finance. This study demonstrates that many wealth managers do not apply novel insights proposed by financial economists when advising their clients. Many practitioners focus on managing only the market risk exposure of their clients’ portfolios. Although financial research has stressed the importance of incorporating human capital, planned future expenditures and the investment time horizon into the investor’s asset allocation, these aspects are neglected by most practitioners.


private bankinghousehold financeprivate wealth managementsurveyportfolio choiceasset allocation

Copyright information

© Palgrave Macmillan, a division of Macmillan Publishers Ltd 2013

Authors and Affiliations

  1. 1.Department of Economics, Mathematics and Statistics; Birkbeck College, University of LondonLondonUK