Wealth Managers
MyPrivateBanking Research
Privacy Vulnerable on Private Banking Websites
The majority of Private Banks and Wealth Managers worldwide shows little regard for the protection of personal data on their public websites. MyPrivateBanking Research surveyed 195 websites in the 17 most important banking markets and found that 61% of the banks do not offer secure web messaging. Almost as high, at 59%, is the proportion that do not give privacy warnings to users of their website... more
Comment: Good Old Times for Offshore Wealth Managers Gone
Time for a New Strategy
The latest data from the Swiss National Bank show that foreign assets in private Swiss bank accounts have declined by almost 30% since the beginning of 2008 whereas domestic assets have declined by only about 14%. One important reason for this is the huge amount of net money outflows of private foreign money. ... more
Wealth: New Trend in Client Behavior
Wealthy Individuals Increasingly Use Social Online Networks
The Internet is changing from being a platform of information to a social network, enabling the senders and recipients of information to engage in real communication, feedback and networking. And hence the Internet is turning more and more into a social network. An important trend for wealth managers is that affluent or wealthy individuals use more frequently the general platforms like... more
Wealth: Engaging Potential Clients Online
Most Wealth Managers Miss Out on Opportunities of Interactive Internet
Wealth Managers do not use interactive tools sufficiently on their websites. In our recent study the majority of the websites displayed an outdated internet functionality from back in 2000. A failure to engage the client on the website and learn about his needs and preferences.... more
Wealth Managers: Reality Check on DAX-Prognoses 2007 - 2009
Stock Market Forecasts are Far from Accurate
Around the turn of the year banks and wealth managers publish their forecasts for the development of the major stock indices in the new year. Most of them conclude them with the prediction of the index points at year-end closing. Media coverage for these forecasts is guaranteed, accuracy however not at all, as a recent analysis shows.... more
Daniel Fischer on UBS Global Property Fund
"It's Not Possible at the Moment to Estimate the Damage"
Dr. Daniel Fischer, senior partner of the Zurich law firm "Fischer & Partner" has played a central role in the aftermath of a number of the latest financial scandals. We have interviewed Dr. Fischer about the latest developments with regard to the UBS Global Property Fund.... more
Wealth Managers: Lessons from the HSBC Data Theft
A New Business Model for Private Bank Employees?
We don’t know how many client files “Hervé” and his mysterious female companion have stolen from their employer HSBC. The estimates range from “under 10” (HSBC statement) to 130,000 (statement of the French prosecutors). But fact is that sensitive data of a Private Bank have again been stolen by an employee of that bank.... more
New MyPrivateBanking Report Released
Best Private Banking Websites: UBS, Deutsche Bank and Credit Suisse
The Private Banking websites of UBS, Deutsche Bank and Credit Suisse come out as winners in a ranking of the online presence of the world's top 20 Wealth Managers. In the study UBS ranked first, with a total score of 82 out of possible 100 points. Overall, the report titled "How Wealth Managers Win Clients Online" came to the conclusion that the biggest Wealth Managers have no reason yet to be satisfied with their Internet presence.... more
United States: US to Tighten the Noose on Offshore Accounts
“This Bill Offers Foreign Banks a Simple Choice”
Behind the technocratic term “Foreign Account Tax Compliance Act 2009” hides yet another round in the hunt for unpaid US-taxes around the globe. After the US government has successfully extracted the names and account data of 5000 UBS customers and re-negotiated the double-taxation treaty with Switzerland and other former offshore destinations, the next law is already in the making.... more
Analysis: The Future of Wealth Management
Good Bye Offshore Clients – But What Now?
Offshore is neither a value proposition nor competitive advantage anymore. Only an approach build on systematic and strategic client segmentation can lead to a new and improved market positioning that differentiates banks in offshore jurisdictions successfully from their foreign and domestic competitors. ... more
Wealth: Results of of Private Banking Survey
Costs are too High and too Hidden
One major goal of our survey was to uncover the total costs of wealth management the client has to pay, that for two reasons are widely underestimated by clients: Firstly, the official fees are mostly in the range of 1% to 2% per year and look rather small. However, over the years they add-up and will cut your return by 30 to 40% after a decade. Secondly, besides the visible stated fees clients have to pay... more
Comment: UBS Strategy
Is Oswald Grübel So Bad After All?
This week UBS had its investors’ day and CEO Oswald Grübel laid out his strategy going forward. Moody’s, just one day later, has downgraded various ratings of UBS. The majority of analysts also keep their negative outlook on UBS. But while it is easy to criticize UBS, the case is nevertheless doubtful. ... more
Wealth Management: Industry Analysis
Are Private Foreign Assets Fleeing From Switzerland?
Yesterday Bank Julius Bär has made an interim statement announcing that some assets have left the bank in Switzerland because of the difficult regulatory environment. We are wondering how big the impact on the Swiss banking system really is. Have foreign account holders already moved substantial amounts of assets because of the pressure of the US, Germany and others on the banking secret? We have taken a look at recent statistics from the Swiss National Bank to clarify the big picture.... more
Wealth: Results of Survey on Private Banks
The Missing Long-Term View in Asset Allocation
The investment proposal is the basis for all future decisions and in our survey we thoroughly analyzed the proposal we received from 20 banks. In a good proposal the wealth manager should firstly summarise his understanding of the client’s personal situation, his investor personality and any specific suggestions or restrictions the client wishes. The wealth manager should... more
Wealth Management: Background Analysis
Global Assault on Banking Secret Continues
Yesterday the Austrian Minister of Finance Josef Pröll announced that Austria intends, along with Luxembourg, to block the EU-Liechtenstein treaty on tax fraud. Pröll argues that anonymous investment vehicles like UK trusts must also be included in any effort to regulate the banking secret. The background of Austria’s reluctance to agree to the tax treaty is that if the agreement with Liechtenstein is approved by the EU, Austria will be one step closer to losing its own banking secret. ... more
Comment: Why In-House Funds Are a Problem
Stop the Product Pushing
Our latest report indicates that about 80% of wealth managers’ equity funds under perform their index benchmark. We have looked at the most common funds, invested broadly in equities across the regions of Europe, Asia, USA and globally. The result is hardly shocking or even new. Dozens of research studies in the past have come to the same conclusion. ... more
New Equity Fund Report Released
Most Equity Funds of Wealth Managers Disappoint
The equity funds returns of the 15 biggest asset management companies and banks worldwide are worse than the respective benchmark indexes. This is the main conclusion drawn by a new study done by the analysts of MyPrivateBanking.com. In the process, equity funds with focus on the regions of USA, Europe, Asia and global coverage were analysed. ... more
Wealth: Results of Survey on Top European Private Banks
Client Inquiry and Proposal Need Structure and Focus
Clients have rather little time for interaction with their potential banker to make the important decision whom to trust with managing their money. Consequently clients start evaluating their possible new adviser from the first contact on. The professionalism... more
Wealth: Easier Search and Selection of Providers in 60 Countries
MyPrivateBanking Directory of Wealth Managers Reaches 500 Entries
On the MyPrivateBanking.com website, those interested can find the detailed profiles of more than 500 private banks and wealth managers in 60 countries. These profiles contain, besides the contact data, current information about locations, number of employees, legal form, date of establishment and the amount of the assets managed.... more
A Farewell to America
Swiss Private Bank Advises Clients to Sell All US-Assets
Dr. Konrad Hummler, Chairman of the Swiss Private Banker Association, CEO and owner of Switzerland’s oldest private bank, Wegelin, is not a man who minces his words. The title of his most recent article on investment is “A Farewell to America” (available only in German). ... more
Comment
UBS Settlement: What It Really Means
On August 19 the US and the Swiss government disclosed some (but not all) details of their agreement regarding the case IRS vs. UBS. It required only six pages for the US and the Swiss authorities to determine how the private financial data of thousands of US citizens will be swiftly handed over by the UBS to the Swiss government and thereafter to the waiting hands of the US authorities. ... more
Wealth Managers: The Success of Warren Buffett
How One Man Did Win Big in the Crisis
This week Berkshire Hathaway’s Class-A stock reached USD 100,000, the first time in 8 months. Berkshire’s Class-A shares are the most expensive on the New York Stock exchange. The stock is now up 40% since its 6-year low in March 2009.... more
Asia: Costs of Wealth Management
Hong Kong Wealth Managers Cut Fees for Mandatory Pension Funds
Wealth Manager Manulife announced a cut in fees for its Mandatory Provident Fund (MPF) portfolios by about 0.35% to 0.5% per annum. The MPF (link) is a compulsory retirement programme for residents in Hong Kong ... more
Asia: The New Wealth
"Don’t Hate the Rich, Be One Of Them"
In April 2009 a commentary column appeared in the Chinese People’s Daily with the title “Don’t Hate the Rich, Be One of Them”. The columnist, Ling Hongmei, argued that “a society not creating wealthy people is never progressing on the healthy track”. ... more
Interview: Dr. Daniel Fischer, Leading Attorney of Madoff Victims
"Banks Have Not Learned Yet To Speak About Their Problems"
Dr. Daniel Fischer, senior partner of the Zurich law firm ´Fischer & Partner" plays a central role in the aftermath of a number of the latest financial scandals. He filed a successful class action suit – the first of its kind in Switzerland – on behalf of clients financially hit by the collapse of Lehman Brothers and is also part of the international alliance of attorneys representing victims of Bernard Madoff's ponzi scheme. In this exclusive interview... more
Asia-Pacific: Changes in Indian Tax Systems
India Doubles Exemption Limit for Wealth Tax
The Indian finance minister has proposed to raise the threshold limit for the levy of wealth tax from the existing Rs 15 lakh to Rs 30 lakh (ca. USD 62k) starting March 31, 2010. The tax rate of 1 per cent of the net wealth ... more
Comment by Steffen Binder, Managing Director, MyPrivateBanking.com
An Important Lesson From Madoff: Make Kickbacks Illegal
Last Friday, the Wall Street Journal reported about massive kickbacks allegedly paid by the Madoff firm to the Austrian fund manager and bank founder Sonja Kohn. In its report the newspaper refers to investigations of US and Austrian authorities... more
Wealth: The World Wealth Report 2009
When Bankers Win While Clients Lose
The assets under management of the 15 leading wealth management firms fell on average by 22% from 2007 to 2008. But in the same period the pre-tax profit margins of these firms, dropped only from 30% to 24.5%. This is a, frequently overlooked, result of... more
Wealth: Global Study on Investor Behaviour
Wealthy Investors Do Not Invest Despite Recognizing Significant Opportunities
A recent study reveals that the majority of wealthy investors (88 per cent) recognise that there are significant investment opportunities available in the current environment. However, the majority of them (68 per cent) are shying away from investing.... more
Wealth: Real Estate Markets
Prime Property in London: No Bargains Yet
Britain’s property market has been a disaster in the last one and a half years. After five years of exploding prices and then followed by the credit crunch, global recession and an overall tightening of the mortgage market, the real estate market crashed. Most regions across the UK have been affected. Some areas have been hit extremely hard. Average prices in... more
Offshore in Delaware
US: The Biggest Tax Haven?
President Obama has put the fight against tax evasion high on his political agenda, especially with respect to money in global offshore centres. During his campaign Obama liked to joke that one building on the Cayman Islands... more
Asia-Pacific: Emerging Markets for Wealth Management
Private Banking in China Growing Rapidly
The number of millionaires in China has grown drastically over the last few years. As a consequence the private banking activities have grow as well.... more
Wealth: Study on Quality of Financial Advice in Germany
Increasing Demand for Independent Advice on Financial Services
Twenty percent of private investors in Germany are willing to pay for independent advice on wealth management. This figure was a result of a recent survey of 1100 private investors conducted by TNS Infratest on behalf of the German DZ Bank. ... more
Wealth: Double Taxation Agreements Revised
What Will Happen To All Those Offshore Assets?
The Swiss government has just announced that they have completed the revision of the first double taxation agreement with Denmark to comply with OECD standards on information exchange. ... more
New Survey on Top European Private Banks
Insufficient Client Focus
MyPrivateBanking.com has just released its annual survey on the top European based private banks. 20 of the most important private banks in Europe were selected to assess the quality of their customer interface, their investment proposal and the total cost of asset management. ... more
Wealth: Private Banks In Search Of A New Business Model
The End of Offshore Banking
The recent actions by the US Justice Department and the IRS against the UBS highlight the increasing pressure on the so called offshore banking model. Private Banks in Switzerland, Liechtenstein, Luxembourg, ... more
Wealth: Private Banks Under Attack
How One Man Takes on the German Wealth Management Industry
Quirin bank is headquartered in Berlin. But you cannot find its offices in the posh new centre of Berlin-Mitte or in the fashionable quarters of Charlottenburg. Quirin is located at the... more
Wealth: Insights in Wealth Management
How the Sticker Price Misleads Clients
Trying to buy the “wealth management” service is as cumbersome as buying a car. To get a good deal a client has to compare different offers, try to understand the ongoing costs, the amount of kickbacks the dealer gets from the manufacturer... more
Asia-Pacific: ETFs Further Spreading
Greater China Index Announced
Investors who want to participate in the economic growth of Greater China (PR China, Taiwan, Hong-Kong) could so far only choose between the rather expensive funds or try their luck as a stock picker. As a new sign that the spreading of ETFs (Exchange Traded Funds) is accelerating, the stock exchanges in Taiwan, Hong-Kong, Shenzhen and Shanghai want to collaborate ... more
United States: UBS Selling Part of US Branch Network
A Pull-out of Foreign Banks will Limit Options for US Wealth Management Clients
It looks like the Swiss-based bank UBS, the world largest wealth manager, continues to scale-down its operations in the U.S. market.... more
Wealth: New Verdict of German High Court
Bank has Burden of Proof, If Client Was Informed About Kickbacks
The German Federal High Court ruled that a banks themselves have the burden of proof on whether a client was informed about kickbacks and not the other way round. ... more
Asia-Pacific: Offshore-Banking
The Liechtenstein Tax Affair Finally makes it to India
The Indian Tax Authority has send notices to more than 50 individuals who allegedly have accounts with the LGT Bank based in the tax haven of Liechtenstein, requesting information on... more
Wealth: Costs of Wealth Management
Global Trend Towards Disclosure of Kickbacks
Over the course of the last few years, we have been seeing an increasing number of clients demanding more transparency from their wealth managers. Since self-regulation obviously has not worked, laws and courts have stepped in to end the practice of kickbacks, or at least make them transparent to the client... more
Wealth: Analysis
Looking For a New Wealth Manager?
The Economist has just reported that, according to a survey, 15% of the wealthy had left their main adviser last year and a further 70% had pulled some of their money away. So it seems that quite a few wealthy individuals... more