Changing focus in private banking scene drives need for better portfolio management
The focus in wealth management has shifted from Europe to Asia, driving the need for more flexible portfolio management solutions. June 15, 2012 | Levina LimWithout a doubt, wealth management and private banking are big businesses. In an international ranking of wealth managers published in the International Private Banking Study of 2011 by the University of Zurich, total market volume of wealth managers by Asset Under Management (AUM) stood at $42.7 trillion in 2010, with the top 20 wealth managers holding 16.6% of that amount. Every year, millions enter into the HNWI category due to the rapid growth of family-owned businesses in emerging economies of Asia, as the new rich replace the old. However, it is important for banks eager to tap into this area to note that the characteristics of Asian HNWIs differ from their counterparts in the West. Figure 1. HNWI distribution, 2007-2010 (by region)
Asian HNWIs tend to be younger and more focused on wealth creation as opposed to wealth preservation. Many of them are successful business owners who are more ambitious and willing to take risks. One feature that stands out is the inclination for the Asian rich to keep their own counsel when it comes to managing their money. The growing size of the global ETF market, which has increased from $40 billion at the end of 1999 to $1 trillion at the end of 2009, is an indicator of this trend. As financial institutions compete for a piece of market share in this highly lucrative business, there is a need for them to build up robust portfolio management processes, software and teams in order to me... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Retail Banking, Risk and Regulation, Wealth Managementretail,Risk and Regulation,Wealth Management, Retail Banking,Risk and Regulation,Wealth Management, Keywords:Private Banking, Portfolio Management, HNWI, ETF, SAGE, Jean-Luc Freymond Private Banking, Portfolio Management, HNWI, ETF, SAGE, Jean-Luc Freymond
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