- Language: English
- 97 Pages
- Published: August 2012
- Region: United Kingdom
The UK Wealth Management And Private Banking Market Outlook: Optimising Customer Value In A Demanding Marketplace
- Published: April 2004
- Region: United Kingdom, Great Britain
- 130 pages
- Scripp Business Insights
This report examines the key issues currently facing wealth managers including cross-border expansion, multi-manager investment structures, lifestyle services and alternative investments, to help formulate effective expansion and diversification strategies for the future
The contraction of European, U.S. and offshore wealth management markets has forced wealth managers to look elsewhere in order to restore flagging revenues. Recently the market has been characterized by expansion into unconventional, underdeveloped and potentially promising markets and regions, but how can the risks be managed? The UK Wealth Management and Private Banking Market Outlook: optimising customer value in a demanding marketplace is a management report that analyses the current wealth market. It provides a comprehensive overview of onshore liquid wealth of affluent customers in the UK, France, Germany, Italy, Spain and the Nordic region.
Key benefits from reading this new management report
- Identify the most attractive European affluent markets in terms of size, composition and growth
- Develop effective cross-border growth strategies by learning from your competitors’ mistakes
- Reduce volatility in your revenue through effective investment in property and hedge funds
- Increase profits by exploiting the growing retired assets market
- Evaluate the suitability and profitability of a lifestyle services offering
Examining the Key Issues
The UK Wealth Management and Private Banking Market Outlook: optimising customer value in a demanding marketplace is based upon primary research with 140 wealth managers the results of which explain:
- The level of affluent individuals and growth in liquid assets across each of the major European countries to help you target the largest and most promising markets.
- How to develop a successful cross-border growth strategy. Organic growth is the most popular in Europe, but could acquisition or joint ventures be better suited to your business model?
- The strategic options for the delivery of lifestyle services. Use our independent analysis of the merits and drawbacks to make an informed decision as to whether to offer such services
- The affect of the European Pensions Directive, use detailed analysis of the UK to predict pension developments across Europe.
- New routes to diversify portfolios, property and hedge funds the benefits and how to circumvent regulatory constraints.
The Answers to Your Questions
- What are the key European trends in selling financial services to affluent customers, in terms of services, products and competition?
- Where in Europe are Independent Financial Advisors a leading competitor and in which countries are they rapidly growing? How will depolarization and changes to tax laws affect their status?
- What is the penetration of hedge funds into European wealthy clients portfolios? What motivates investment in this asset class, what is the main barrier to growth and how can you overcome it?
- How large is the mass affluent market in terms of numbers and monetary value, and how does this compare to the high net worth market? Which UK regions offer the most attractive customer base now and in the future?
- Multi-Manager investment is growing, what is driving this growth? Why do industry experts see this as an efficient route to alternative investments? What are their benefits to the customer and the wealth manager, are their any drawbacks?
Key findings from this report
This report provides a closer look at the distinctive features of the European wealth management market. Learn more about these key findings:
- Differing UBS, Dresdner and Barclays organic growth strategies succeeded, whilst the mergers and acquisitions of Deutsche Bank and Merrill Lynch fared less well.
- The vast majority of wealth managers are discrete in terms of lifestyle services, choosing not to market them as a separate offering.
- UK wealth managers thresholds levels for affluent advisory portfolios are 46% higher than those for discretionary portfolios, how do these compare to High Net Worth portfolios and what pricing structures dominate the industry?
- Research has shown weak correlation between property funds and equity in the UK, residential house prices rose by a CAGR of 11.9% between 1997 and 2002 making UK property an efficient means by which to diversify portfolios.
The Value Proposition
Benefit from 130 pages of expert insight and analysis, enabling you to:
- Identify the most effective growth strategies in terms of expansion into new asset classes, new or emerging international markets and new target customers.
- Predict the effect of changing demographics, use the experience of the evolved and mature UK market to develop new pension products and exploit the expected increase in demand.
- Target the most lucrative markets based on performance statistics for each market.
- Improve customer satisfaction and retention through provision of lifestyle services and a more diverse range of asset classes.
- Develop more effective planning based on expert opinion from specialist wealth managers, case studies and forecasts to 2010.
Our portfolio of financial services management reports are designed to help you make well informed, timely business decisions. We understand the problems facing today’s financial services executives when trying to drive your business forward, and appreciate the importance of accurate, up-to-date, incisive product, market and company analysis. We help you to crystallize your business decisions. The strength of our financial services research and analysis is derived from access to unparalleled databases and libraries of information and the use of proprietary analytic techniques. Our reports are authored by independent experts and contain findings garnered from dedicated primary research. Our authors’ leading positions secure them access to interview key executives and to establish which issues will be of greatest strategic significance for the industry.
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CHAPTER 1: INTRODUCTION
CHAPTER 2: THE WEALTH MANAGEMENT & PRIVATE BANKING OVERVIEW
UK mass affluent customers
- Market drivers
- Wealth creation and reduction factors
- GDP and other economic factors
- Liquid wealth concentration
- Market overview
- The influence of income
- Private client wealth managers
- Stockbrokers' focus is on direct equity
- Retail asset managers
- Future hurdles
- Retail banks
- IFAs are key competitors
- Fund supermarkets
Mass affluent customers
- Market trends
- Banking services
- Safety and advice
- The housing boom
- Retail banks
- Brokerage services
- Growth in Europe
- Growth in the Middle East
- Growth in Asia
- Drivers of cross border activity
- Organic growth
- Banking on proven business
- Banks with cross-border organic growth
Mergers and acquisitions
- Middle East
- Deutsche Bank
- Middle East
- Central and Eastern Europe
- UK expansion
- Offshore markets
CHAPTER 3: CUSTOMER FOCUS: INCORPORATING LIFESTYLE SERVICES
- Lifestyle services and wealth management
- Third party lifestyle services
- Benefits and difficulties
CHAPTER 4: FEE STRUCTURE ANALYSIS AND PRICING STRATEGIES
- Affluent wealth managers
- Upper HNW managers
- Lower HNW managers
- Transaction/handling charges by
- Tier structures
- Transparency issues
- Performance-related fees
CHAPTER 5: TACKLING THE STRATEGIC ISSUES IN WEALTH MANAGEMENT
Wealth management in retirement in the UK
- Market overview and developments
- Different needs and attitudes
- Retirees in the future
- Self Invested Personal Pensions (SIPPs)
- Executive Pension Plans (EPPs)
- Small Self-Administered Schemes (SSAS)
- Unapproved retirement benefit schemes
- Unfunded unapproved retirement benefit
- Funded unapproved retirement benefit
- Assets under management
CHAPTER 5: TACKLING THE STRATEGIC ISSUES IN WEALTH MANAGEMENT (CONTD.)
Pensions for the wealthy in Europe
Multi-manager investment structures
- Real estate investment trusts and derivatives
- Property funds
- Lease structures in Europe
- Property investments for wealthy individuals
- Future prospects
- UCITS3, UK, France, Germany, Italy, Spain
- Fee structures
- Internal compliance
- Distribution factors
CHAPTER 6: APPENDIX
- UK mass affluents with liquid assets £30k-£200k
- number, aggregate liquid assets
- Average house price and growth by region
- Pre-tax earned income £50,000+ individuals
- number, total value of pre-tax earned income
- Proportion of total UK population and of total £50,000+ segment in each region
- Thresholds and costs for the UK big four's premier banking offerings
- Beneficial ownership of UK shares, £billion
- UK personal deposit account balances by competitor
- Current account rates for selected retail and online banking players
- Top 10 UK IFAs by turnover
- Number of funds and fund managers offered by
selected fund supermarkets
- Number of European mass affluent individuals as a proportion of total population, by country
- European liquid assets
- as a proportion of total assets
- and mass affluent individuals
- European mass affluent individuals by country
- Value of mass affluent liquid assets by country
- Banks that grew organically to cross borders
- Banks that merged or acquired to cross borders
- Transaction/handling charges by investment types
- Full and insured plans in force by SIPP competitor
- with non-insurance companies
- with insurance companies
- Assets under management for pensions for wealthy individuals
- Proportion of pan European wealth managers
- offering exposure to alternative investments
- Perceived barriers to the proliferation of property investments, classified geographically
- Proportion of pan European wealth managers
- offering exposure to property by region
- expected changes to exposure (next 2 years)
- Customers' primary motivation for investing in alternative investments
- % of wealth managers offering hedge funds or envisaging doing so in the next 1-2 years
- Identifying the dynamics of mass affluent wealt creation
- Changes in savings and investments assets
- Share of total retail liquid assets
- Mass market
- High net worth
- Mass affluent
- UK individuals with liquid assets of £30-200,000
- Aggregate assets
- Asset concentration
- European individuals with €50-00,000 liquid assets
- Lifestyle services in wealth management
- Overview of multi-manager investment structures
- Key drivers behind the multi-manager trend
Chapter 2: The UK Wealth Management and Private Banking Market Overview
Private client wealth managers
Thresholds and costs for the UK ‘Big Four’ banks premier banking offerings, 2003 (Table provided in Full Report)
Among the biggest wealth managers catering to the UK mass affluent are Gerrard, Charles Stanley, Rathbones and Carr Sheppards Crosthwaite. Barclays' acquisition of Gerrard (announced in October 2003) will have a significant impact on the mass affluent sector. This deal will allow Barclays to increase its size and recognition in the provision of portfolio management services to affluent UK individuals at a time when the market appears to be improving.
A number of dedicated wealth management services aimed at mass affluent individuals have been launched in recent years. These were highly differentiated from mass-market retail services and often introduced completely new brands such as 'Inscape', the wealth management service from Abbey National.
The economic challenge of serving the mass affluent market profitably has highlighted the need to have a clearly defined concept of the target market and a business model that is viable in terms of both revenue generation and costs. Investment thresholds generally serve as a poor indicator of the target market and the level of client loading/service being delivered. Analysis of a range of UK mass affluent wealth managers reveals that generally, average portfolio sizes rise in line with increasing thresholds, however this relationship is not particularly strong and there are many exceptions. Even more acutely, thresholds provide minimal indication of the level of client loading to be expected.