News > Wealth Management

People Moves: Manulife AM makes two senior hires; Crédit Agricole veteran to leave
Victor Choi to exit Crédit Agricole. Choi, the French firm’s Asia head of market and investment solutions, will be leaving the private bank at the end of year. Choi is a 10-year veteran of Crédit Agricole’s wealth management arm, and was the firm’s head of FX and precious metals advisory prior to recent station. He will be replaced by Norbert
People Moves: UBS names head of Asia-Pacific wealth management
UBS appoints Edmund Koh head of Asia-Pacific wealth management. Koh, an over 20-year veteran of the financial services industry, will be replacing Kathryn Shih, who was named regional president of the Swiss bank. He will also continue with his previous role as UBS’ country head in Singapore, and remains a member of the firm’s global wealth management executive board. Finance
Morgan Stanley focuses on wealth management
<p>Morgan Stanley reportedly plans to fire a quarter of its fixed income staff, and the move could be another step closer to Morgan Stanley's focus on wealth management.<br /> "If Morgan Stanley downsized FICC, then we believe that would also decrease volatility in earnings and move them closer to a long-term strategy of having Wealth Management be the main revenue contributor to total revenues," writes Brian Kleinhanzl of KBW, in Barron's. "We believe that MS could see a better relative multiple versus the Universal Bank group once the percentage of Wealth Management and Investment Management revenues reach 75% of total revenues (expected to be 51% in 2016)."<br /> Staff cuts always hurt, but it sounds like Morgan Stanley is making smart, strategic moves with this one.<br /> Photo: gerlos </p>
How to get the attention of wealthy prospects
<p>Given today’s competing demands for attention, it’s never been harder to get in front of affluent prospects. But here’s is one statistic that will get you in front of wealthy investors: Research shows that for affluent families, 70% of wealth is lost by the end of the second generation, and 90% is gone by the end of the third.</p> <p>Focusing on hot buttons</p> <p>To engage with prospects, you have to focus on their hot buttons. While leaving a legacy for their heirs is not typically a priority for investors with $1 million or $2 million, the higher up the wealth curve you go, the more likely that the wellbeing of kids and grandkids is a priority. That’s why, when talking with a wealthy prospect, it is worth saying something like, “For my clients with substantial assets, quite often leaving a legacy for children and grandchildren is an important consideration. Tell me, where does this rank among your priorities?”</p> <p>If this is a high priority for them, you could add: “A recent article pointed to research showing that for wealthy families, 70% of assets are gone by the end of the second generation, and 90% are lost by the end of the third generation. I’d be happy to send you that article, but the good news is that there are some things you can do to reduce the chances of that happening.” You can link to that article from Money Magazine: Why Rich Families Lose Wealth by the Second Generation.)</p> <p>The causes of wealth loss</p> <p>The Money Magazine article was based on a report by U.S. Trust, Insights on Wealth and Worth. This report was based on over 600 investors with investable assets over $3 million. A third of the investors had assets of $3 to $ 5 million, a third had assets between $5 million and $10 million and the final third had assets of over $10 million.</p> <p>Here are some of the findings with regard to leaving a legacy:</p> <p> 63% said it was important to leave an inheritance;<br />  ,;<br /> just 36% had fully disclosed their wealth to their children; andfmD<br /> Only 27% had told children how much they were likely to inherit.</p> <p>The statistics on loss of wealth across generations comes from The Williams Group, founded by former San Francisco Giants tackle Roy Williams. In conjunction with an academic at the Miami of Ohio School of Business, they studied over 3,000 families to understand why only one third had lost their wealth and family harmony into the next generation. Their key finding: The primary reason for this loss was not due to poor investment performance, taxes or dilution of wealth across numerous heirs; it was the failure to preserve assets across generations due to heirs’ lack of preparation and a breakdown of trust and communication.</p> <p>More about this research can be found in the 2013 Wall Street Journal article Lost Inheritance. (If you are not a Wall Street Journal subscriber, search for “Wall Street Journal Lost Inheritance” to read the article.)</p> <p>How to help clients talk about their wealth</p> <p>This is far from the first article on the challenges that affluent families have in talking about money. The #1 Hot-Button Topic for Wealthy Families discussed research from UBS Wealth Management conducted with both wealthy investors contemplating leaving an inheritance and heirs who had received an inheritance. Here’s an excerpt from that article:</p> <p>Among heirs who have received an inheritance, 34% wish their parents had done something differently and 74% plan to do something differ</p>
Raymond James buys Deutsche unit
<p>After months of speculation, Raymond James has agreed to buy the U.S. Private Client Services arm of Deutsche Asset &amp; Wealth Management.</p> <p>The Florida-based Raymond James has been expanding nationally, and the deal will add 200 advisors to its staff, reports the Tampa Bay Business Journal. The Deutsche team specializes in high-net-worth clients and some institutional investors, mainly in large metropolitan areas. They will operate under the brand Alex. Brown, and will be led by Haig Ariyan, from Deutsche.</p> <p>About 400 support staff will also be offered positions at Raymond James.<br /> Photo: Mark Moz</p>
What wealth advice would you give to Kobe Bryant for his retirement years?
<p>Kobe Bryant has announced that he will retire from the NBA at the end of this season. Over the years, he's earned a tidy bundle. Forbes writes:<br /> Bryant’s $680 million in total earnings is the most ever by a team athlete during their playing career. The only athletes to earn more are in individual sports and include Tiger Woods, Michael Schumacher and Floyd Mayweather.<br /> On Twitter, a couple of  tweeters suggested that Bryant invest in TIPS, the inflation-protected Treasury securities -- a conservative approach. Another suggested that Bryant ask LeBron James, another NBA great.</p> <p>We would suggest that Bryant follow in LeBron's steps -- in terms of seeking advice. For his investment tips, LeBron turned to the Oracle of Omaha, Warren Buffett.  Tell us in the comments field what you would recommend and compare your ideas to what Buffett has to say in this CNBC interview:</p>
Video: NexGen likely to change wealth advisors -- and that's an opportunity
More and more wealth managers are finally coming to terms with the seismic shifts in their business, says April Rudin, CEO, The Rudin Group. Back in 2008, most didn't want to talk about NexGen or how technology and social media were changing their business models. Speaking at a Financial Research Associates conference, Rudin says: Embrace the change. It's an opportunity.
SEC ready to allege Credit Suisse private bank misled investors
<p>More scrutiny on the banks, this time on their wealth management arms. It will be particularly unwelcome because several have announced plans to make catering for rich individuals a key part of their growth strategies, as margins fall in other divisions.</p> <p>The US Securities and Exchange Commission is preparing to accuse Credit Suisse of misleading investors by improperly inflating its reports of assets under management in its private bank, people familiar with the case said, writes the Financial Times. (paywall)<br /> Essentially the watchdog plans to allege that starting in 2012 Credit Suisse at times improperly counted client assets in the Americas as net new assets for the Swiss private bank. Investors watch net new assets closely because they are seen as a measure of how the division is performing.<br /> In  October, Credit Suisse CEO Tidjane Thiam said the bank would emphasise wealth management and growing its Asia business while shrinking investment banking, echoing moves by UBS among others, reported Fortune.<br /> Photo: Credit Suisse</p>
Why team bonuses hurt performance
Editors note: This story is excerpted from Advisor Perspectives. Every advisor wants support staff to operate at peak efficiency. One way to do to that is to hire bright, capable team members with a strong work ethic and to provide financial incentives to encourage strong performance, allowing staff to earn bonuses and participate in practice profitability as a means of
Wells Fargo CEO sees wealth management as the 'biggest opportunity'
Wells Fargo Chief Executive Officer John Stumpf says wealth management is "a huge opportunity" for the bank going forward. "The biggest opportunity is in wealth investment management -- not that the business isn’t great. It could be a whole lot bigger," Stumpf said at the Goldman Sachs Investors Conference in New York. "We have about 11% of operational deposits," Stumpf said. "But