News > Wealth Management

Video: No more 'one-size-fits-all' for wealth management marketers
Customization is the key to success in our diverse, global wealth management world, says April Rudin. Speaking at a Financial Research Associates conference, the wealth marketing expert advises clients to find multiple "entry points" for investors and to even forget millennials vs boomers. Focus on the individual.
You won't find older rich folks elbowing you in aisle 3 on Thanksgiving
<p>Thanksgiving weekend shopping is a sport for the young and the affluent -- but not the super wealthy.  Spectrem Group reports from a survey it took of  the high net worth crowd that nine out of ten would not be shopping on Thanksgiving at all. Certain segments just can't resist a bargain:<br /> Analysis by net worth and age finds less wealthy and younger Affluent respondents are most likely tear themselves away from the Thanksgiving table to hit the malls. Respondents with less than $100,000 are slightly more likely than their wealthier counterparts to take advantage of Thanksgiving store hours (17 percent vs. 6 percent of those with between $500,000-$1 million and $1 million-$5 million each, and 9 percent of Ultra High Net Worth households with at least $5 million net worth).</p> <p>Younger Affluent respondents, too, are more likely than older respondents to shop on Thanksgiving (roughly 20 percent of the under 40 crowd and those ages 41-50 compared with 10 percent of Baby Boomers ages 51-60 and 4 percent of those ages 61 and up).<br /> Photo: Andy Wilson</p>
EFG on the hunt for more relationship managers
<p>Despite predictions by fintechies that robo-advisors will eventually dominate the wealth management industry, there is still big demand for human advice.</p> <p>Swiss private bank EFG International plans to hire seven more relationship managers (RM) in Asia by the end of the year, Albert Chiu, EFF Asia CEO told Asian Private Banker. (paywall) The priority is to find people with strong, extensive networks among China's new rich.</p> <p>"We continue to see a very strong pipeline of senior RM candidates, and are confident to grow our numbers of senior bankers in the region," said Chiu, who has a year-end target of 115 RMs.</p> <p>That's great news for individual bankers and their own personal wealth. A shortage of talent is a common complaint in the industry, so well-connected RMs can play a rather lucrative game of musical chairs.<br /> Photo: Vincent Wong<br /> &nbsp;</p>
Barclays could exit its Asia WM business
<p>UK-based banking giant Barclays could be pulling out of its Asia wealth management business, after being in the game for 40 years, and is reportedly flirting with potential buyers.</p> <p>The Australian Financial Review reports that the bank – which is looking to focus more on its U.S. and U.K. businesses – has spoken to several interested parties but has not reached a final decision.</p> <p>The bank has been offering wealth management services in one form or another since the 1970s, with bases in New Delhi, Hong Kong, and Singapore, according to its website.  But its global wealth management business has been feeling the pain recently, with revenues dropping 17% in the third quarter, to 227 million pounds ($342 million), from the previous year.</p> <p>The sale is part of a broader effort to restore growth to the U.K. lender that has been battered by restructuring costs and expensive scandals.  The unit – which represented 4% of the bank's overall revenue in the third quarter – has posted declines for the past four quarters. The bank has not offered a breakdown of revenues for its Asia wealth management business.</p> <p>Either way, Barclay's withdrawal is perhaps good news for the likes of Credit Suisse eager to gobble up a larger chunk of Asia's wealth management market.<br /> Photo: Jeff Montgomery<br /> &nbsp;</p> <p>&nbsp;</p>
Malaysian banks contract fintech fever
<p>Maybank has followed CIMB as the latest Malaysian lender to catch the fintech bug. It has recently announced that it would act as advisory partner to accelerator programs run by Malaysian Global Innovation and Creativity Centre (MaGIC).</p> <p>The aim is to help boost Malaysian fintechs that "are also seeking to expand in Asean countries and for Asean startups looking to tap the growing high net worth market in Malaysia," reports Asian Private Banker. (paywall)</p> <p>CIMB took up the wealth management products of four startups in September. The firms were winners of a pilot InnoChallenge Initiative between CIMB and Multimedia Development Corp.<br /> Photo: Christian Junker | Photography<br /> &nbsp;</p>
Internal bias at private banks
<p>Large wealth management firms offer their clients a comprehensive range of products and services. As well as vanilla bonds and equities, their wares include complex high yield structures, corporate advice, succession planning, passion investments such as fine art and classic cars, philanthropy guidance and access to trophy real estate assets.</p> <p>Many boast a so-called open architecture platform. That means that they also tap into their competitors'  offerings to ensure that their clients get the best and cheapest deal. The wealth management arms of Citi, UBS, CS and Deutsche, for instance, all claim to adopt this liberal practice as a matter of course.</p> <p>Yet when pressed, private bankers admit to a natural tendency towards using in-house resources for their discretionary portfolio management (DPM).</p> <p>"There is a small positive bias towards selecting internal funds because the underlying managers have better access to them," said Jean-Louis Nakamura, Lombard Odier's Asia Pacific chief investment officer at the AsianInvestor Fund Selector Forum in Hong Kong last week. (paywall)</p> <p>Patrick Grossholz, Asia Pacific head of investment management at UBS Wealth Management reckoned it "did not make any difference for any DPM whether clients choose in-house asset management or bespoke wealth management solutions."</p> <p>The key is to make sure that the client feels he is getting the best deal, he argued.<br /> Photo: Toni Blay<br /> &nbsp;</p> <p>&nbsp;</p>
Video: 'Robo advisor' is for technophobes
April Rudin, founder of The Rudin Group, explains why she thinks we should lose the term "robo advisor:"  Technology should be an advisor's best friend.