All articles by PBI Editorial
PBI Editorial
Kotak to siphon Japanese wealth pool into India
Wealth manager Kotak Mahindra will use its tie-up with Sumitomo Mitsui Banking Corporation (SMBC) to create a bridge between wealthy Japanese savers and Indias capital-hungry fund industry. TV Raghunath, head of group strategy at Kotak Mahindra, said the idea is to build a bridge between the high savings, low yield economy in Japan and the high growth, high yield Indian economy.
Reserve Bank of India reviews foreign bank ownership rules
The Reserve Bank of India is reviewing Indias bank ownership rules that could provide an easier route to market for international private banks and wealth managers. The paper proposes offering a limited number of licences to new banks and could lead to the re-entry of large Indian industrial companies. One proposal suggests capping non-resident investment in banks to 50% and locking it at that level for the first 10 years.
Barclays Wealth operating costs up 20%
Assets under management at Barclays Wealth rose less than 2% to £153.5bn ($243bn) in the first half of 2010 but have increased 15% compared to the half year ending 30 June 2009 Barclays said operating expenses increased 20% to £635m principally due to the impact of growth in high net worth business revenues on staff and infrastructure costs and the start of Barclays Wealths strategic investment programme in its global technology platform The £350m investment programme cost £33m in the first half of 2010 and is expected to increase to £80m for the second half of 2010.
HSBC assets down $13bn, opens family office
HSBCs private bank client assets for the six months to 30 June 2010 were $354bn, down $13bn compared with 31 December 2009. Net new money flows stood at $7bn, including inflows inSwitzerland where the private bank had suffered negative publicity linked to the theft of private client accounts data in March. The worlds fifth largest private bank announced it had launched a family office partnership with its global banking and markets division that will target ultra high net worth clients and family offices seeking quasi-institutional client services.
SocGen income falls 64%, StanChart AuM up 12%
Net income at Socit Gnrales (SocGen) private banking unit dropped to 23m ($30.4m) in the second quarter of fiscal 2010, falling 63.5% from 63m in the comparable period of 2009. The private banking units assets under management totalled 82.3bn at the end of June 2010, including an inflow of 0.9bn in the second quarter of 2010.
Subscribe to our Newsletter
Get industry leading news, data and analysis delivered to your inbox
HSBC client’s $300m loss stresses TIEA dangers
The potential dangers of tax information exchange agreements (TIEAs) with countries lacking strong governance have been highlighted by a recent UK court case brought against HSBC Private Bank by a former client Jayesh Shah. Zimbabwean authorities froze then seized more than $300m of Shahs assets after they became aware UK authorities were making anti-money laundering checks on a legitimate transaction from his HSBC Private Bank accounts between September 2006 and February 2007. Shah claimed for damages against HSBC Private Bank, for failure to comply with his transfer instructions and for other breaches of duty, but the charges were dismissed
Extension of UK pay rules to hit asset managers
The UK Financial Services Authority proposes to extend its banker pay and bonus rules to include more than 2,500 firms. The financial regulators updated remuneration code will include all banks and building societies, asset managers, hedge fund managers, UCITS investment firms.
Wealth managers score poorly with female clients
Women feel undervalued as a wealth management client segment with almost a quarter (24%) saying wealth managers could significantly improve how they serve women, according to a study from Boston Consulting Group (BCG). RBS Coutts is aiming to win new clients by targeting high net worth women in Asia, one of several private banks and wealth managers making special efforts to target female investors.
UBS assets continue slide, slows outflow
UBS, the worlds second largest private wealth manager, has seen its assets under management (AuM) continue to slide through the second quarter of 2010, although client outflows are slowing. UBS reported AuM of CHF1.61bn ($1.52bn) in the second quarter of 2010 down 4% from 1.67bn in the first quarter, when its wealth management divisions are combined Invested assets the most commonly use quoted figure for AuM at UBS stood at CHF917bn in its Wealth Management and Swiss Bank (WM&SB) division and CHF693bn in its Wealth Management Americas division.
Rockefeller names former US diplomat CEO
Former US Commodity Futures Trading Commission chair Reuben Jeffery is to take over as chief executive of US multi-family office Rockefeller Financial following the death of its former chief executive Jim McDonald. Jeffery, most recently a senior adviser at the Center for Strategic & International Studies CSIS in Washington DC, will start on 7 September and will be responsible for Rockefellers four business groups: Rockefeller Wealth Advisors, Rockefeller Asset Management, Rockefeller Capital Partners, and Rockit Solutions.