Global Wealth News

Ten accountants every wealth manager should know

Admin — Sat, 03 Jul 2010 02:14:43 +0000

Wealth managers and accountants do not always find it easy to bridge the cultural divide between their two very different disciplines. James King of Price Bailey, who has spent much of his career alongside accountants, says: ‘It is the distinction between entrepreneurial and methodical mindsets.’

Nonetheless, for smaller wealth managers, a core relationship with an accountancy firm can make a quantum difference to how fast their business can grow. To number-driven accountants, performance, rather than size of firm or the depth of a relationship, is the key to a strong and fruitful relationship with wealth managers. Source

SMFG, Barclays start private banking in Japan

Admin — Sat, 03 Jul 2010 02:12:23 +0000

Sumitomo Mitsui Financial Group and UK banking giant Barclays said on Thursday they would jointly launch a wealth management business in Japan, targeting individuals with at least 500 million yen ($5.7 million) to invest.

Japan’s third-largest bank by assets acquired a 2 percent stake in Barclays for about $1 billion in 2008 and the two have been preparing to start a private banking business in Japan. Source

Asia’s wealthy surpass Europe’s for first time

Admin — Sat, 03 Jul 2010 02:07:34 +0000

The wealth of rich Asians has surpassed Europe’s millionaires for the first time as the region’s stock and property prices rebounded from the global recession, a report shows. The wealth of Asia’s high net worth individuals – those with liquid assets of at least US$1 million – jumped 31 per cent last year to US$9.7 trillion, surpassing Europe’s US$9.5 trillion, according to a report by Merrill Lynch Wealth Management and Capgemini.

For the first time, the size of Asia’s rich population equalled that of Europe at 3 million. “The star performer was Asia-Pacific, the only region in which both macroeconomic and market drivers of wealth expanded significantly in 2009,” the report said. Source

Shocker: The Rich Got Richer Last Year

Admin — Sat, 03 Jul 2010 02:04:33 +0000

Bank of America / Merrill Lynch and consulting firm Capgemini just released the 2010 edition of their venerable survey. Within the report is a mountain of data detailing where the world’s wealthy reside and where they stash their cash. See the full report here.

Below are some of its highlights on the world’s High Net Worth Individuals–folks with at least $1 million in liquid assets, excluding primary homes. They call them HNWI for short. I’ll just call them rich. Source

World Wealth Report: HNWs return to 2007 levels of wealth, Asia-Pacific leading way

Admin — Sat, 03 Jul 2010 02:03:35 +0000

The world’s population of high net worth individuals (HNWIs) grew 17.1% to 10.0 million in 2009, returning to levels last seen in 2007 despite the contraction in world gross domestic product (GDP). Global HNWI wealth similarly recovered, rising 18.9% to US$39.0 trillion, with HNWI wealth in Asia-Pacific and Latin America actually surpassing levels last seen at the end of 2007.

For the first time ever, the size of the HNWI population in Asia-Pacific was as large as that of Europe (at 3.0 million). Source

UMB Acquires Prairie Capital Management LLC

Admin — Sat, 03 Jul 2010 02:00:18 +0000

UMB Financial Corporation has signed a definitive agreement for the acquisition of the assets of Prairie Capital Management LLC, (Prairie) an independent asset management and wealth management firm based in Kansas City, Mo. The transaction is expected to close on July 30, 2010.

Prairie, with offices in Kansas City, Denver, Chicago and Philadelphia, operates a national asset and wealth management practice serving a diverse client base including high net worth private clients, family offices, trusts, foundations and endowments, corporations and plan sponsors. The Prairie team provides institutional-quality investment advice, using a multi-manager approach on an open architecture platform. Source

A new era of wealth management data feeds emerging?

Admin — Sat, 03 Jul 2010 01:59:26 +0000

Is market and market-related data a crucial driver of success in the wealth management industry? Well, it could be in a couple of ways. Obviously, if a wealth management firm (wealth management news) could craft a truly unique and high value-added data feed for customers, it would prove a marketable benefit, though I think that route is unlikely.

It could also drive business as an advisor tool that can aid in the retention and recruiting of top producers. If a firm could offer a truly unique service that would compel high-producing brokers to join its team, that would be great thing. According to Celent, we’re seeing some innovation, as more firms opt for customizable services that offer advanced features beyond mere data look-up. Source

Regional banking Trojans sneak past security defences

Admin — Sat, 03 Jul 2010 01:58:10 +0000

Cybercrooks have developed regionally-targeted banking Trojans that are more likely to slip under the radar of anti-virus defences. Detection rates for regional malware vary between zero and 20 per cent, according to a study by transaction security firm Trusteer. This company markets browser security add-ons to banks, which offer them to consumers as a way of reducing the risk of malware on PCs resulting in banking fraud.

Trusteer cites two pieces of regional malware targeted at UK banking consumers. Silon.var2, crops up on one in every 500 computers in the UK compared to one in 20,000 in the US. Another strain of malware, dubbed Agent-DBJP, was found on one in 5,000 computers in the UK compared to one in 60,000 in the US. Source

What the CGT hike means for trusts and international investors

Admin — Sat, 03 Jul 2010 01:57:07 +0000

Not since the proposed changes to the taxation of UK resident non-domiciled individuals has such controversy been stoked as is the case with the proposals to change the rate of capital gains tax, says Christopher Shaw, group head of wealth planning at Societe Generale Private Banking Hambros.

What is more surprising is that much of the criticism appears to have come from within the parties forming the newly elected government. This article explores what impact the changes will have on trusts as well as international investors. Source

Will the EU limit hedge fund pay?

Admin — Sat, 03 Jul 2010 01:53:16 +0000

According to the BBC, new EU rules to regulate bank bonuses – announced on Thursday – will hit Mayfair hard: the onerous restrictions on pay, says Robert Peston, the BBC’s business editor, will apply to hedge funds too: I have learned that the bonuses paid to senior executives at hedge funds and fund managers are to be subject to strict conditions, under new EU-wide rules that have been agreed by EU members states and legislators.

Under the new rules, agreed by member states and legislators, only 30 per cent of any bonus for bankers and fund managers could be paid straightaway in cash – and the proportion would fall to a fifth for large bonuses. Source