All articles by PBI Editorial
PBI Editorial
StanChart AuM up 12% globally, 26% in Asia
Standard Chartereds wealth management arm posted a 20 percent decline in operating income in 2009 after a collapse in demand following the financial crisis. Despite strong group-wide results, with profit before tax up 13 percent at $5.15 billion, its wealth management and deposits product line, declined from $2.79 billion last year to $2.23 billion in 2009
Clients agree to disagree on transparency
There is a huge disparity between private clients and wealth managers views on transparency in the industry, according to research. When asked whether the wealth management industry was transparent, 100 percent of clients answered no, while 100 percent of wealth managers said yes. The result shows that what clients want in terms of transparency and what they receive, according to the report, are two different things.
CS AuM ‘will be bigger than UBS in Q4’
Analyst estimates for 2011 show Credit Suisse may become larger than rival UBS in one of the key areas of their private banking assets under management Strong growth in Asia and a record start to 2010 at Credit Suisse, coupled with more outflows at UBS, indicate the crossover will happen in this years final quarter. Credit Suisse could eclipse UBS as Switzerlands largest wealth manager in assets under management by the end of this year if it maintains its current rate of growth.
Russia’s $650bn opportunity
There are around 40,000 ultra high net worth individuals in Russia, holding investable assets of around $700bn Most private banking operations in the country are relatively small scale, and local bankers estimate only around $50bn of the market is currently managed by wealth managers. Russia, despite its vast potential and obvious connections with wealth, through the oligarchs who have made their names across the world, is renowned as a difficult place to do business.
UHNW turn to fixed-fee consultants
Investment consultants are seeing increased demand from ultra high net worth clients in search of advice on which wealth managers they should invest their money with The consultants in many respects operate like family offices, with fixed-fee structures and open architecture investment models
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UBS website top in online client battle
UBS, Deutsche Bank and Credit Suisse have the strongest websites among the leading private banks, according to research. UBS finished top of an analysis of 20 wealth managers conducted by Swiss-based MyPrivateBanking Research Its site has a clear structure and excellent navigation and offers a range of tools for clients to analyse investment options and products.
Hedge funds reach a turning point
After a bout of consolidation, reorganisation and large-scale insolvency, hedge funds are back within touching distance of pre-crisis highs Morgan Stanley research projects industry inflows of 10 percent in 2010, as the funds address their position on areas of client concern: transparency, liquidity and fees. Hedge fund flows have started to turn positive in the fourth quarter, with research from Morgan Stanley predicting an improvement of 10 percent in industry assets under management (AuM) through 2010.
Third Financial lands de Broë contract
Williams De Bro, the UK-based investment manager, has selected Third Financial Software to provide the firm with a fully integrated wealth management platform, tercero. It comes as UK-based Third Financial starts to pick up speed in the wealth market, announcing a 300 percent increase in revenue in the full year to November De Bro is the business 14th client win since it started operations in January 2008.
Lloyds stands by Middle East push as Dubai falters
The international private banking arm of Lloyds Banking Group (Lloyds IPB) is to continue its push in the Middle East despite the fall-out from the recent debt crisis in the region. Michelle DAncona, the regional director for the bank in EMEA, said Lloyds IPB remained committed to the region despite recent concern over the confidence crisis in Dubai, sparked by state-linked by Dubai Worlds request for a standstill on $26 billion of distressed debt. Lloyds Banking Group chairman Win Bischhoff said the banks exposure to Dubai was small and would not have a material impact on shareholders or operations.
Industry shifts to ‘declared offshore’
With the current focus on tax amnesties, and with the UK deadline approaching on 4 January, UK private banks have to consider their options. Undoubtedly some money will be moving back onshore, and they will be asking themselves how they can capture that Further into the future, looking at the G20 meetings in Canada next June, I think we are going to start seeing an increasing move away from offshore and an increased focus on declared offshore