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The UK Wealth Management And Private Banking Market Outlook: Optimising Customer Value In A Demanding Marketplace Product Image

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
- READ MORE >

EXECUTIVE SUMMARY
CHAPTER 1: INTRODUCTION

CHAPTER 2: THE WEALTH MANAGEMENT & PRIVATE BANKING OVERVIEW
Summary
UK mass affluent customers
- Market drivers
- Wealth creation and reduction factors
- GDP and other economic factors
- Liquid wealth concentration
- Market overview
Regional analysis
- The influence of income
- Competitors
- Private client wealth managers
- Stockbrokers' focus is on direct equity
- Retail asset managers
- Future hurdles
- Retail banks
Online banks
- IFAs are key competitors
- Fund supermarkets
Mass affluent customers
- Market trends
- Banking services
- Safety and advice
- The housing boom
- Competition
- Retail banks
- Bancassurers
- Brokerage services
Cross-border strategies
- Growth in Europe
- Growth in the Middle East
- Growth in Asia
- Drivers of cross border activity
- Organic growth
- Onshore
- Branding
- Banking on proven business
- Banks with cross-border organic growth
Mergers and acquisitions
- Middle East
- Deutsche Bank
Emerging markets
- Asia
- Middle East
- Central and Eastern Europe
- UK expansion
- Offshore markets

CHAPTER 3: CUSTOMER FOCUS: INCORPORATING LIFESTYLE SERVICES
Summary
Introduction
Lifestyle services
- Lifestyle services and wealth management
- Third party lifestyle services
- Benefits and difficulties
Conclusions

CHAPTER 4: FEE STRUCTURE ANALYSIS AND PRICING STRATEGIES
Summary
Introduction
Fee Structures
- Overview
- Affluent wealth managers
- Upper HNW managers
- Lower HNW managers
- Transaction/handling charges by
investment type
- Tier structures
- Transparency issues
- Performance-related fees
Advertising strategies

CHAPTER 5: TACKLING THE STRATEGIC ISSUES IN WEALTH MANAGEMENT
Summary
Introduction
Wealth management in retirement in the UK
- Market overview and developments
- Different needs and attitudes
- Retirees in the future
UK Pensions
- Self Invested Personal Pensions (SIPPs)
- Executive Pension Plans (EPPs)
- Small Self-Administered Schemes (SSAS)
- Unapproved retirement benefit schemes
- Unfunded unapproved retirement benefit
schemes (URBS)
- Funded unapproved retirement benefit
schemes (FURBS)
- Assets under management

CHAPTER 5: TACKLING THE STRATEGIC ISSUES IN WEALTH MANAGEMENT (CONTD.)
Pensions for the wealthy in Europe
Multi-manager investment structures
- Overview
- Competition
Property investment
- Overview
- Real estate investment trusts and derivatives
- Property funds
- Lease structures in Europe
- Property investments for wealthy individuals
- Future prospects
Hedge funds
- Overview
- Regulations
- UCITS3, UK, France, Germany, Italy, Spain
- Performance
- Fee structures
- Internal compliance
- Distribution factors

CHAPTER 6: APPENDIX
Definitions
TABLES
- 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

FIGURES
- 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
- Number
- 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.

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