2013: Trends to Watch in Global Wealth Management

Transcription

1 Executive summary 2013: Trends to Watch in Global Wealth Management Analyzing how the industry will adjust in the year to come 1

2 INTRODUCTION 2013: Trends to Watch in Global Wealth Management analyses how the industry will adjust in 2013 The product is delivered in two parts: the main Word deliverable alongside a PowerPoint summary. Selected trends are presented in more detail on the following slides Trend Series One: The product and service environment Outsourcing will expand the product range, but also refocus firm and client relationships The HNW client meeting is changing, with more focus on two-way interaction 2013 Trend Series Two: The Regulatory Environment Anticipate a view before being told to take a view Intellectual capital will be as important as financial capital The compliance job market will continue its talent scuffle FATCA will continue on its global march and other countries will continue to follow suit 2013 Trend Series Three: The Investment Environment Equities are attractive, but assets will go elsewhere too The role of the private investor in private equity is becoming more important ETPs are popular but it is the advisor not the investor that will have to be educated 2013 Trend Series Four: The Competitive Environment Retrenchment among large wealth managers will inevitably continue Boutiques will gain market share The Middle East will attract more foreign wealth managers 2

3 THE PRODUCT AND SERVICE ENVIRONMENT Outsourcing expands the product range, but also refocuses client relationships A return to core operations is still being driven by cost savings and regulation Conversely clients are seeking more products directly from their wealth managers Outsourcing allows private banks to return to the most traditional of private banking services: the client relationship Monitoring outsourcing will be equally important In late 2012, the UK Financial Services Authority expressed concern over the monitoring of outsourcing asset management services and its ultimate suitability for the end client 3

4 THE PRODUCT AND SERVICE ENVIRONMENT The HNW meeting is changing, with more focus on two way interaction 2013 will see the HNW client meeting change from a one-way conversation to a two-way interaction Availability of high-quality economic research means HNW investors can develop their own opinions and strategies for wealth management. Without a credible system to interpret, test, and if appropriate implement these views, advisors will find themselves unable to satisfy the demands of their clients. The Sage BlackSwan platform supports an increasingly interactive client relationship Predictions on economic variables, from the client can be inputted into the platform and future performance is instantly adjusted. 4

5 THE REGULATORY ENVIRONMENT The compliance job market will continue its talent scuffle 2013 will be another year of regulatory challenges for wealth managers. Accordingly, compliance salaries will continue their upward trend as the best talent demand a premium for their work Publically displaying highly skilled compliance teams is increasingly important Transparency of not only compliance but also of processes and continuous review will be paramount. EFG Private Bank's 4.2m FCA fine for lax antimoney laundering control signals the year ahead and the firm focus of regulators on wealth management Source: Robert Walters 5

6 THE INVESTMENT ENVIRONMENT ETPS are popular, but it is the advisor not the investor that will need to be educated With low costs and varying exposure, ETPs are still rising in popularity among investors Financial advice reforms that deny advisors commission payments and encourage upfront and transparent advisor fees are further drawing attention to ETPs that do not provide commission There is rising awareness and interest among investors for ETPs Wealth managers will find themselves at a disadvantage if they cannot demonstrate knowledge and understanding of ETPs. In 2013 wealth managers will increase advisor ETP education, duplicating support networks already offered to retail investors. Source: Datamonitor s Global Wealth Managers Survey

7 THE COMPETITIVE ENVIRONMENT The Middle East will attract more foreign wealth managers Already in 2013 LGT, Coutts, Credit Suisse, Bank of China, and Julius Baer have opened offices, acquired business, or shown intent to expand in the Middle East. Selected markets in the Middle East by CAGR of HNW individuals The number of HNW individuals in the Middle East is forecast to grow from 90,000 in 2013 to 120,000 in 2017 at a CAGR of 7%. Single markets represent different opportunities Inevitably it is the financial centres of Dubai and Abu Dhabi that will remain the focus point Foreign wealth managers are targeting regional wealth seeking internationalization through foreign investment opportunities and global banking services. Source: Datamonitor s Global Wealth Markets Analytics 7

8 Report information Title: 2013: Trends to Watch in Global Wealth Management Published: May 2013 Product code: CM View Table of Contents Buy online 8

9 APPENDIX Methodology and further reading This report is compiled by interpreting proprietary data on high net worth (HNW) customer characteristics, asset allocation trends, and product demand, as well as extensive primary and secondary research. For further details of the survey or methodologies used please contact Further reading: Datamonitor (2013) 2012 in Review: Global Wealth Management, February 2013 (CM ) Datamonitor (2013) Global Wealth Management Competitor Tracker, (CM ) Datamonitor (2013) Global Retail Savings and Investments Analytics, April 2013 (CM ) Datamonitor (2013) Global Wealth Market Analytics, April 2013 (CM ) Datamonitor (2013) The Global Wealth Market in 2013, scheduled for publication in May 2013 Datamonitor (2013) HNW Customer Analytics, January 2013 (CM ) 9

10 APPENDIX Disclaimer All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Datamonitor. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Datamonitor can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect. 10