targeting mainstream private clients more profitable
Money flows in the wealth management industry increased by 24.6% in 2005, according to the latest Private Banking Benchmark survey.
The research found UBS had the most assets under management (AUM) with more than $1.3 trillion (£7.2bn), while money flows increased by 8.75% for the year. Citigroup hit $1.3 trillion, a rise of 14% and Merrill Lynch also topped $1 trillion.
Wealth managers targeting high net worth individuals (HNWI) with a minimum investment of $1m also saw significant growth, according to the survey. UBS saw its business in this sector increase 29.96% to $966bn, while Bank of America's rose 18.05% to $228bn and Morgan Stanley's rose 9.36% to $374bn.
However, those targeting clients with $10m or more were not as successful. Northern Trust's AUM increased 6.16% to $117bn and JP Morgan's AUM only rose 3.09% to $313bn.
Cath Tillotson, partner at Scorpio Partnership, a wealth management consultancy, said: "Targeting the ultra-HNWI is often cited as the goal of many private banks. However, the research is now demonstrating it is often more profitable for banks to attack the mainstream private client market. There are more opportunities and the solutions can be more efficiently sold."
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till