- January 4, 2010 - Challenges, Opportunities For Wealth Industry In 2010
2010 will be a year of opportunity but with plenty of risks and uncertainty, as dramatic changes occur within the wealth management industry and global economy.
The migration of wealth Eastwards, a changing environment for offshore financial centres, regulatory tightening, and continued mergers and acquisitions in the wake of the financial crisis will drive the wealth agenda for 2010.
Macro Environment
While wealth management can appear to be a sector able to shrug off economic gyrations compared with other financial businesses, it has not been immune to the financia.
- January 4, 2010 - Goldman Sachs May Pull Some Units Out Of UK As Taxes Bite - Report
Goldman Sachs is reviewing its London operation, a move that could eventually see entire departments shifted overseas, according to the Daily Telegraph newspaper in a report naming no sources.
It said the Wall Street firm, which also has a wealth management operation, is mulling future strategy as the UK government gears up to levy a new top-rate income tax of 50 per cent on high earners and levy a 50 per cent tax on bonuses in excess of £25,000 (around $40,200)
The story adds to speculation that higher taxes, tougher regulations and an increasingly aggressive political stan. .
- December 16, 2009 - Regulator Approves Fund That Taps Life Expectancy Shifts
Europe’s Centurion Fund Managers has won approval from the Luxembourg financial regulator to launch an open-ended fund that seeks to make money from trades in products linked to shifts in life expectancy.
The Centurion Longevity Fund targets an annual return of 6 to 9 per cent and aims to provide low volatility and minimal correlation to equity markets. It was granted approval by the Commission de Surveillance du Secteur Financier.
- December 16, 2009 - Hedge Funds Win UK Court Ruling On Distribution Of Lehman Client Cash
Hedge funds controlled by Goldman Sachs and GLG have won a vital court ruling over how billions of dollars of clients’ cash held by Lehman Brothers when the US investment bank collapsed should be distributed, the Financial Times reported.
The High Court in London ruled that money that was not properly ring-fenced by Lehman’s European arm could not be claimed out of a $1 billion pool controlled by the bank’s administrators, the report said.
The collapse of Lehman Brothers last September, which sent shockwaves through markets, raised a number of broader issues, including what .
- December 14, 2009 - Wealth Managers Must Plan For Exodus From UK
There has been no end of commentary about the horrendous – not to mince words – state of the UK public finances, as revealed in last Wednesday's Pre-Budget Report. And for those in the wealth management industry, the UK government’s decision to hit bankers’ bonuses with a 50 per cent tax, coming on top of other tax hikes on top earners, will only underscore the fact that the UK is no longer a welcoming place for high net worth individuals. The attack on bankers’ pay also raises concerns over whether the UK government even cares about respecting employment contracts and basic principles of l.
- December 11, 2009 - Goldman Sachs Moves To Counter Remuneration Challenges
Goldman Sachs is making major changes to its compensation structure worldwide.
The firm’s entire 30-person management committee will receive 100 per cent of their discretionary compensation in the form of shares at risk, which cannot be sold for five years, in addition to other restrictions. This element represents the vast majority of senior management's compensation and is directly tied to the firm's overall performance.
- December 9, 2009 - RBC Chief Says Still Eyeing Acquisitions, Especially For Wealth Arm
The head of Royal Bank of Canada has reiterated the bank’s view that it is looking to boost the size of its wealth management arm with acquisitions but said it did not expect to make a big US retail acquisition soon, according to Reuters.
Gordon Nixon, CEO, said the bank is eager to boost its capital markets and wealth management segments.
But while there has been much speculation that RBC would also like to build on its US retail banking presence, Mr Nixon was quoted as saying that he did not expect imminent deal-making because restructuring in the industry was proceeding s.
- December 9, 2009 - AllianceBernstein Sets Sights On Wealth Management Market
AllianceBernstein Holding, the US investment management firm, will stress investments to boost its wealth management business, an executive said yesterday, according to Reuters.
The company's private client group is "where you will see us making investments," the New York fund firm's chief operating officer David Steyn was quoted as saying at a Goldman Sachs investment conference.
The comment highlights how wealth management, while not having escaped the buffeting of the financial turmoil in the past two years, is seen as offering a relatively secure source of.
- December 8, 2009 - The Challenges Of The UHNW Market After The Crisis
Despite the kudos attached to providing services to the ultra wealthy, this is not necessarily the easiest or most lucrative segment to service. “For catch-all players, ultra high net worth and very high net worth individuals might add to a firm’s prestige but not necessarily to profitability,” said PricewaterhouseCoopers in its 2009 private banking survey, adding that wealth managers seeking to operate in these segments must have the scale, systems and product mix to do so profitably.
Dwindling numbers
Already, fierce competition at this level is being compounded by dwindli.
- December 4, 2009 - More Bonuses In Shares At Goldman – Report
Senior staff at Goldman Sachs may get all their bonuses in shares this year, the Financial Times reported. Chief executive Lloyd Blankfein is also pondering plans to increase the proportion paid in equity across the board.
The firm’s bounce back is seen as likely to restore the pay of many of its bankers and traders to pre-crisis levels.
