Core Insights - Direct indexing is gaining traction in investment management, with $864.3 billion in strategies reported by Cerulli Associates as of the end of 2024 [1] Group 1: Demand for Personalization - Asset managers at the Future Proof Festival highlighted the increasing demand for personalized investment strategies while cautioning against "over-customization" [2] - Personalization in investing can vary significantly, and firms investing heavily in research and management are essential for achieving market-beating returns [2][3] - A balance between personalization and effective active management is crucial, as over-customization may undermine the value of professional investment management [3] Group 2: Target Audience for Direct Indexing - A strategic asset allocation approach is deemed suitable for approximately 80% of investors, while high-net-worth individuals may seek customized strategies aligned with their values [4] - Direct indexing is particularly beneficial for high-net-worth investors who can leverage tax management strategies due to substantial capital gains [4] - Concerns were raised about the risks of excessive customization, suggesting that a diversified portfolio of ETFs may be a more effective solution for many investors [5]