All articles by Will Cain
Will Cain
Evolving SFO business models
The characteristics of single family offices are heavily influenced by the lead family member Sometimes, as in the case of Sturgeon Ventures, the investment and personal preferences of the family can even give rise to a new investment theme
The great industry thaw gathers pace
Wealth management assets under management have been recovering since the crushing lows of March but what lessons have been learned from the financial crisis among wealth managers Will Cain says pricing structures, balance sheet strength and risk management will be key considerations in 2010. At a time when global warming is so high on the agenda, it seems appropriate that commentators are starting to herald the end of the ice age in the global economy.
Back to the drawing board
Investment strategies and theories are being reconsidered after a decade in which global equity markets declined, throwing into question the buy-and-hold doctrine advocated by many academics and commentators Will Cain looks at some examples of passive, absolute and asset allocation strategies. Portfolio management has been put under the microscope after last years meltdown across all but the most conservative asset classes.
Sarasin fee model starts to kick in
In April, Bank Sarasin introduced a new fee structure designed to address falling margins in its private banking business The aim is to remove the conflict between portfolio turnover and revenue by charging clients an all-in fee
Pictet considered ditching unlimited liability model
Partners at Pictet, one of Genevas most distinguished private banks, considered abandoning its commitment to the unlimited liability model at the height of the financial crisis. The model, which is the cornerstone of traditional Swiss private banking, means banks must have at least one partner with unlimited liability for the banks commitments. But Jacques de Saussure, a managing partner at Pictet, said partners had discussed alternatives to the approach when US investment bank Lehman Brothers collapsed in October 2008.
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Coutts expands UHNW service
RBS Coutts has launched a jet financing service for its international clients as it looks to expand its offering to ultra high net worth individuals. It will complement the private banks existing service to UK clients and an already established international yacht-financing business It is understood to be able to provide finance on assets worth up to £40 million ($67 million), according to a report in Leasing Life, another of VRLs financial titles.
SEC probes fake PBI awards claims
The Securities and Exchange Commission (SEC), the US financial regulator, has probed a company named International Banking Group which is claiming fake Private Banker International awards on its website.In an email sent to PBI, Morgan B Ward Doran, an attorney in the SECs enforcement department, said International Banking Group (IBG), headquartered in Los Angeles, was claiming awards it had not won.On its website, the bank states it received a 2008 award for Innovation in Products and Services; 2007 and 2005 awards for Outstanding Private Bank for Alternative Investments; and a 2006 award for Outstanding Regional Private Bank Europe and Outstanding Asia-Pacific Private Banker.All of the awards IBG was claiming were awarded to SG Private Banking or its employees
Capturing tomorrow’s clients today
The future of the wealth industry is centred on a crop of highly ambitious clients that are not as aware as they should be about wealth management services on offer How do private banks gain access to these wealthy individuals and what are their wealth needs PBI looks at the latest research Wealth managers need to provide a clearer idea of the services they offer to overcome a perception barrier among prospective clients
An industry in transition
The 19th annual PBI conference drew speakers from across the industry to speak about the key trends affecting their businesses Will Cain sums up the main talking points from a day and a half of presentations on compliance, offshore centres and private banking business modelsOffshore strategy, business models and compliance were the key areas of discussion at this years PBI summit and awards There was an overriding feeling of optimism for the year ahead, with most private bankers predicting inflows of client assets in the 10 percent to 15 percent range (see page 10), though there were some caveats.Key takeaways Compliance remains a key concern, with senior bankers claiming increased regulatory costs could add between 3 percent to 4 percent to cost income ratios across the industry. Uncertainties persist over the effect of international pressure on offshore centres and the impact of recent tax agreements
Talent management and UBS
Private banks pay big money to bring in the most talented staff and relationship managers, but could be overlooking a much cheaper source of talent: those within their own business William Cain spoke to the former head of talent management at UBS about optimising performancePrivate banks can improve profit by up to 5 percent by effectively managing talent already in their organisation, according to the former head of talent at UBS Chris Roebuck, now an independent adviser who works with a range of businesses including private banks, said while many wealth managers actively search for new talent, they are missing out on resources in their own business.Theres no particular reason why you should not get something like a 5 percent increase in the bottom line if you can identify leaders in the business and optimise how you manage talent, he said