Wealth W Advisory Services September 2009

Transcription

1 Wealth Advisory Services September 2009

2 Wealth Advisory Services WL s approach to wealth management Family relationships that extend across five generations, and professionals who have worked with the same families for more than 35 years Clients throughout the United States and in 35 other countries worldwide Long-term relationships Centurystrong Global reach Industry leader An objective, premier financial services company that has served clients since 1903 Specializing in tax-advantaged strategies for wealth preservation, growth, and transfer Focus on clients with liquid assets of $10 million or more Highly regarded by estate attorneys, tax planners, and other influencers Comprehensive asset management, fiduciary, and family office services Combination of in-house and third-party investment managers 2

3 Competitive advantages What differentiates Wealth Advisory Services Experience and reputation Founded in 1903 by du Pont family members Recognized as a premier trustee and fiduciary by trust and estate attorneys and tax advisors throughout the United States Holistic approach Comprehensive planning and investment management services Objective investment advice Combination of in-house and third-party investment managers In-depth knowledge of Delaware s legal and tax advantages Non-Delaware residents who establish trusts in Delaware benefit from legal and tax advantages not available for trusts governed by the laws of other states Long-term relationships Focus on building relationships, not selling products Some client relationships span five generations 3

4 Where HNW clients are 43% of the HNW market ( $25mm) is in 7 cities Boston 1,253 San Francisco 2,186 Los Angeles 2,290 Chicago 1,391 New York 4,546 Philadelphia 1,093 West Palm Beach 1,131 Markets where Wilmington Trust has offices Source: IXI Corporation. 4

5 Where Wilmington Trust is Clients in all 50 states; presence in key markets Boston Stamford 5 WAS offices in eastern Pennsylvania Baltimore New York Princeton, New Jersey 3 WAS offices in Delaware Atlanta Beverly Hills Los Angeles Costa Mesa Wealth Advisory Services office locations North Palm Beach Palm Beach Stuart Vero Beach 5

6 WAS market niches We focus on 3 high-net-worth market niches Mid-Atlantic business owners Business and professional clients in the mid-atlantic region with up to $25 million in liquid assets Leverages mid-atlantic commercial banking relationships HNW clients nationwide High-net-worth clients throughout the United States with up to $25 million in liquid assets Clients served from Delaware and key HNW markets Family wealth Ultra-high-net-worth clients throughout the United States with $25 million in liquid assets Relationships managed by Wilmington Family Office and GTBA Overall focus is on high-net-worth clients with $10 million in liquid assets 6

7 Wealth Advisory Services Steady growth in Wealth Advisory revenue $ $200 $150 $100 $50 $88.8 $98.1 $9.0 $10.6 $12.7 $18.2 $82.8 $80.8 $21.0 $16.0 $20.8 $21.6 $90.1 $97.8 $25.4 $19.2 $111.0 $30.4 $17.8 $123.9 $35.3 $20.2 $136.5 $40.1 $45.5 $21.4 $27.2 $158.6 $ $ Trust/investment advisory Mutual fund Planning/other services S&P 500 Dollars in millions. WAS revenue by component prior to 2000 not available. 7

8 Wealth Advisory Services Volatile equity markets mask WAS growth Wealth Advisory Services revenue 2009 YTD 2008 YTD Percent change from prior year Trust and investment advisory revenue $62.8 $79.5 (21)% Planning and other services revenue $21.2 $21.3 (1)% Mutual fund revenue $12.7 $12.8 (1)% Total Wealth Advisory revenue $96.7 $113.6 (15)% S&P 500 at 30 June 2009 vs was down 28% Trust and investment advisory fees are tied to financial market valuations Investment mix of managed assets: 36% equities, 37% fixed income, 27% other Most mutual fund fees are tied to money market valuations Planning fees are based on the complexity of services provided, not asset valuations YTD = six months ended 30 June. 8

9 Wealth Advisory expansion Wealth Advisory sales double in 10 years California Delaware Florida Georgia Maryland 1998 sales $10.9 million 2008 sales: $24.9 million NJ: 1% CA: 5% FL: 9% MA: 3% DE: 8% DE: 86% FL: 9% Massachusetts New York New Jersey PA: 5% Family Office: 45% GA: 5% NY: 9% Pennsylvania y MD: 3% PA: 12% Family Office 9

10 Comprehensive services Comprehensive services for HNW clients Complete Asset Management SM Asset allocation and portfolio construction, ti not stock-picking ki Combination of third-party and in-house managers Fiduciary services Strategic planning for wealth generation, preservation, and transfer Trust, tax, private banking, and administrative services Family office services 70 professionals in 5 offices on East and West Coasts Specialists in inherited wealth, LLCs and LLPs, executive compensation, and entertainment and sports professionals 10

11 Complete Asset Management SM Three critical investment decisions Lower Risk Higher Higher 3. Find and combine skilled managers Because no single institution excels in all investment categories Return 2. Shift between asset classes and styles Because misvaluations and accurate forecasting present profit opportunities Low wer 1. Diversify intelligently Because we believe no other decision does more to increase returns and reduce risk 11

12 Complete Asset Management SM Focus on asset allocation, not selling product Managing risk vs. increasing return Asset allocation determines return Forward-looking asset allocation Portfolio construction, not stock-picking All asset classes and styles Mix of active and index strategies In-house fixed income and core equity expertise Independent, third-party managers for other asset classes and styles Consistent strategies regardless of account size 12

13 Complete Asset Management SM Recent investment management accolades Best-in-category for five years ended 12/31/08, as ranked by Lipper: Wilmington Short/Intermediate-Term Bond Fund in Short-Intermediate Investment Grade Debt Funds category Wilmington Multi-Manager Real Asset Fund (Institutional Shares) in Mixed- Asset Target Allocation Conservative Funds Best 2008 taxable bond fund in Lipper/Barron s Fund Survey, February 2009 Wall Street Journal Category Kings for 2008: Short-term bond fund (#2 out of 10) Intermediate bond fund (#8 out of 10) Large-cap value fund (#10 out of 10) 13

14 Fiduciary services 106 years of fiduciary expertise Strategic planning for wealth generation, preservation, and transfer Expertise leverages legal and trust advantages available in Delaware and other jurisdictions Financial, estate, retirement, and succession planning Trust and administrative services Tax services Private banking and custom lending Philanthropic services Estate settlement 14

15 Family office services Family office practice offers specialty services Family office practice Wilmington Family Office East Coast presence Specialties: Inherited wealth Corporate executives LLPs & LLCs Grant Tani Family governance and succession planning Estate, investment, and philanthropic goal alignment Tax, estate, and financial planning Risk assessment and mitigation Foundation and trust administration Insurance oversight Real estate acquisition/disposition Barash &Alt Altman Some concierge services West Coast presence Specialties: Entertainment industry Sports figures Fees are based on services provided, not client assets Clients may or may not use asset management services Asset management fees separate from family office fees 15

16 Market segmentation Wealth management market segmentation Family offices: 3000 (Clients with $100mm) FOs Multifamily offices and wealth advisory firms: 600 (Clients with $20mm - $100mm) MFOs Wealth advisory firms and trust companies Advisors: 12,000 (Clients with $1mm - $20mm) Wealth management firms and private banks Investment advisory firms Investment t managers and brokers Source: Family Office Exchange. 16

17 WAS market positioning How we serve these markets Family offices: 3000 (Clients with $100mm) Multifamily offices and wealth advisory firms: 600 (Clients with $20mm - $100mm) Advisors: 12,000 (Clients with $1mm - $20mm) FOs MFOs Wealth advisory firms and trust companies Wealth management firms and private banks Investment advisory firms Investment t managers and brokers We have relationships with 200 family offices We focus CT, DE, MA, NY, CA, and family office services on these segments Main focus of WAS in FL, GA, MD, NJ, PA Wilmington Brokerage Services and offices in DE & FL Source: Family Office Exchange. 17

18 WAS growth plans Our plans to grow the WAS business Goal Strategy Objectives Be recognized as the provider of choice for comprehensive, multigenerational wealth management services among: High-net-worth individuals and families in the U.S. The legal, tax, and financial experts who advise them Be our clients' most trusted advisor by providing: Objective advice, guidance, and seamless execution on a comprehensive array of wealth advisory services Services that grow, protect, and transfer wealth across multiple generations Invest in products, markets, and technology to grow and improve leverage within the business Recruit and retain industry leaders in trust, investment management, planning, and family office services Provide competitive investment offerings grounded in an institutional quality approach Achieve the majority of new business from markets beyond Delaware Target clients with liquid id assets $10 million 18

19 r e c o g n i z i n g w o r t h