Bringing you live news and features since 2006 

Wealth management industry rebounding but still on a tightrope

RELATED TOPICS​

Assets under management at banks surged by a median of 17 per cent to recover ground from the previous year, according to Scorpio Partnership’s Global Private Banking KPI Benchmark 2010.

The global wealth industry now manages USD16.5trn in high-net-worth assets, compared to USD14.5trn last year.

However, the health of the industry is far from good. The industry key performance indicator of profitability has dropped by a median of 35 per cent. The cost:income ratios have risen to an average 78.2 per cent, continuing a worrying trend from the previous year (72.4 per cent) when most banks faced a decline in efficiency.

Net new money data this year highlights a median inflow across all institutions of USD900m for the financial year 2009, a decline of 60 per cent from last year’s data.

Sebastian Dovey, managing partner at Scorpio, says: “The wealth management engine is still misfiring for many. On the one hand the asset management machine is working and this is shoring up numbers. While, for virtually all banks, in terms of attracting new business it has been a case of net no money. Significantly our global HNW data shows there are strong signs of wealth creation even in these complex markets and yet new clients are still holding back from opening accounts with the industry.”

Latest News

EFAMA has published its latest Monthly Statistical Release for May 2024...
Solactive writes that it has expanded its collaboration with Kiwoom Asset Management by providing the underlying indices to the KIWOOM..
MSCI has announced the launch of MSCI Private Capital Indexes, writing that with growing investor interest in private markets, high..
Matteo Greco, Research Analyst at Fineqia International, writes that bitcoin (BTC) ended the week at approximately USD68,150, marking a 12.1..

Related Articles

Scott Kefer, VictoryEx Capital Holdings
Bailey McCann writes that active ETFs are capturing investor interest, according to the latest data from Morningstar, which finds that...
Chris Lo, Columbia Threadneedle
In a recent insight on India by Columbia Threadneedle Investments, the firm reports that the country’s economic reforms, which aim...
With an election on the horizon in the United States a group of ETFs is poised to capture investments on...
Robot worker
Qraft Technologies, based in South Korea, specialises in the use of AI in security selection and portfolio construction....
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by