News > Wealth Management

The difference between investment and private banking
Stiffer capital requirements and more onerous regulatory burdens have taken their toll on traditional investment banking activities. Sales and trading margins are also being undercut by new competitors as well as technologies that make an intermediary’s function redundant. Some banks, notably Credit Suisse and Deutsche Bank a couple of months ago, are if not re-inventing themselves as private bankers then
Video: Dollars vs impact: How millennials measure success
In a speech before the Financial Research Associates, wealth marketer April Rudin describes the key values for "global, mobile" millennials.
Who will dominate the retirement advice business?
In the way Amazon dominates the book-selling business, a financial-service provider will emerge as the leading provider of retirement-income strategies. Here is how to assemble a full business model and my predictions about which companies have the best chance to take over. The retirement advice business is fragmented, inefficient and serves only a small segment of the population. It’s a
Planning to avoid family conflict
  The wealth management industry tends to sing similar tunes. The strength of an individual private bank's voice might vary, but the songs don't. Sometimes they emphasise open architecture, other times digital technology, philanthropy, holistic service, all-round corporate strength or access to trophy assets. An especially loud trope at the moment is "succession planning". In terms of succession planning, many family businesses fail, not
People Moves: Old Mutual Wealth distribution chief exits after 3 months
Old Mutual Wealth distribution chief exits. Mary-Anne McIntyre is leaving Old Mutual Wealth after just three months as chief distribution officer. She will be pursuing other opportunities. Andy Thompson has been appointed CEO of Intrinsic Financial Services, reporting to Richard Freeman, the new chief distribution officer. Financial Times Photo: ©iStock.com/ooyoo    
Classic cars are top performers
Passion investments normally make up a small part of a wealthy person's portfolio. The bulk goes into stocks, bonds and real estate, some into racier alternatives such as private equity but only the leftovers into collectibles for a bit of fun. Experts advise you to have a genuine interest, whether it's in art, stamps, watches or even comic books and old toys,
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>