The Briefing on private banking and wealth management
The latest global news, trends and data on private banking and wealth management
The total liquid wealth of individuals aged between 25 and 34 in the UK is £14.7bn, according to Max Rothery, digital growth strategy manager at private bank Kleinwort Hambros.
Rothery adds that although this seems significant this figure covers a population of roughly 7.5m and therefore the average liquid wealth is less than £2000.
Global HNWI wealth crosses $70trn mark for first time: Capgemini
The combined wealth of HNWIs across the globe grew for the sixth consecutive year and exceeded the $70 trillion mark for the first time in 2017. The growth was driven by improving global economy, according to a report by consulting firm Capgemini.
Capgemini’s World Wealth Report 2018 revealed a 10.6% growth in the collective wealth of the world’s millionaires and a rise of 1.6 million HNWIs globally. The rise in HNWI wealth was the second-fastest since 2011, the study said.
The increase in global HNWI population and HNWI wealth in 2017 was led by Asia-Pacific and North America.
47% of wealth managers expect demand for alternatives to rise, while 22% expect a drop in demand. The asset class is becoming more popular as a diversifier and as the allure of bonds fade, according to GlobalData Financial Services
RBC Wealth Management—U.S. expands technology offering
RBC Wealth Management—U.S. has launched new products to improve financial advisers’ understanding of clients’ goals.
The firm, in collaboration with fintech firm Envestnet, introduced a new platform called AdvisoryLink. The platform’s ability to consolidate client portfolios into one desktop portal offers advisers a better view of their clients’ financial position.
In addition, RBC also introduced an enhanced unified managed account (UMA) dubbed RBC Unified Portfolio. Through the new offering, clients will be able to add fixed income solutions and over 200 strategist portfolios run by the firm’s in-house experts and third parties to the mutual funds and ETFs in their accounts.
San Francisco is the number one city in the world for entrepreneurial millennials based on based on factors such as startup ecosystem, and employment, according to aggregator platform Nestpick
More firms to implement ESG: Morgan Stanley
More than 84% of asset managers are actively pursuing or have at least considered sustainable investing according to fresh research by Morgan Stanley.
Globally more than $22.8trn has been invested sustainably representing a fundamental shift in the way asset managers perceive environmental, social and governance factors (ESG).
More than three in four (78%) of firms said they seek to align with the United Nations Sustainable Development Goals.
Private equity and real assets are the sectors with the most attractive sustainable investment opportunities, while hedge funds are the least popular, the study found.
A report by consultancy Boston Consulting Group shows that only 10% of female wealth management clients use a female relationship manager for investment advice.
It also shows that gender is the least important client segmentation factor for wealth managers.
MUFG to trial own cryptocurrency next year
Japan-based Mitsubishi UFJ Financial Group (MUFG) will launch the trial of its own digital currency as early as next year.
The cryptocurrency, MUFG Coin, will be trialled in participation with nearly 100,000 account holders, the Japan Broadcasting Association (NHK) has reported.
During the test period, the participants will be allowed to convert their legal deposits into MUFG Coins through a mobile wallet app. One MUFG Coin will be equivalent to JPY1.
MUFG Coin can be used to pay bills for goods and services in restaurants, convenience stores, as well as other stores that accept this digital currency.
The world’s top 25 private wealth managers managed approximately $10.8trn of assets in 2017, 14% higher than 2016, according to the latest research by GlobalData.