Wealth Management Competitive Dynamics 2019

Table of Contents

1. EXECUTIVE SUMMARY

• 1.1. Profit was up but AUM was down for the world’s largest wealth managers in 2018
• 1.2. Key findings
• 1.3. Critical success factors

2. BENCHMARKING WEALTH MANAGERS BY CLIENT AUM

• 2.1. Growth in Super League assets slowed in 2018
  • 2.1.1. The top wealth managers lost market share in 2018 as investment markets turned sour
• 2.2. Traditional Swiss and American banks remain market leaders by AUM
  • 2.2.1. The top private wealth managers remain unassailable, regardless of AUM reductions
  • 2.2.2. Both UBS and Bank of America Merrill Lynch suffered AUM reductions in 2019
  • 2.2.3. Conversion of assets into managed wealth along with inflows boosted Raymond James
  • 2.2.4. Acquisitions still boosted AUM at some major wealth managers across the world
  • 2.2.5. Not all acquisitions were enough to boost AUM in a turbulent 2018
• 2.3. There has been little change in the focus of private banks
  • 2.3.1. Leading wealth managers are still primarily operating in the HNW space
  • 2.3.2. Citigold and HSBC Premier are two of the most established mass affluent investor propositions, but other banks are also keen on this segment
  • 2.3.3. Asian banks have been keen to develop programs for the pre-private bank market
  • 2.3.4. A majority of the top 40 wealth managers offer robo-advisor services, with more on the way
• 2.1. Net new money was positive but could not keep up with poor market performance
  • 2.1.1. The world’s largest private wealth managers are still attracting clients, but at lower rates
  • 2.1.2. Only a handful of competitors saw an increase in their net inflows

3. BENCHMARKING WEALTH MANAGERS BY FINANCIAL PERFORMANCE

• 3.1. Group performance improved but wealth divisions were stronger still
  • 3.1.1. Group profits continued to rise across the top 40
  • 3.1.2. Wealth management divisions modestly grew their share of group revenues in 2018
  • 3.1.3. Profit was a struggle at a number of wealth divisions in 2018

4. COMPETITIVE TRENDS

• 4.1. Wealth managers are doubling down on two familiar trends
  • 4.1.1. Asian growth is increasingly important to the world’s largest wealth managers
  • 4.1.2. The UHNW market is still a priority segment for most of the top 40
• 4.2. Lending has become more of a priority for major wealth managers
  • 4.2.1. Many wealth managers have stepped up lending to wealth clients or via their wealth divisions
  • 4.2.2. Wealth managers lower down the wealth tiers are also prioritizing lending to investors
• 4.3. Increasing the proportion of HNW wealth covered by mandates remains a major priority
  • 4.3.1. Top wealth managers are committed to converting clients to mandates
  • 4.3.2. The shift towards greater use of mandates reflects a change in investor preferences

5. APPENDIX

• 5.1. Abbreviations and acronyms
• 5.2. Supplemental data
• 5.3. Secondary sources