2020 Foresight Report: No Magic Bullet - Wealth Management Models

Published: May 2013
No. of Pages: 79
   

Synopsis
The report provides analysis, information and insights into wealth management models used by wealth management companies globally
• The report provides a global snapshot of various wealth management business models adopted, their market size and future outlook
• The report provides a comprehensive analysis of the respective market size, future outlook and competitive landscape of leading wealth management companies
• The report provides an analysis of trends and drivers driving the growth of various wealth management models
• The report provides a detailed analysis of best practices adopted by various wealth management companies across wealth management models



Summary
Wealth management is one of the most promising segments of the global financial services sector due to the emerging markets in Asia and Latin America. However, downside risks have intensified due to financial crises, volatility in capital markets, the movement of capital to relatively safe assets and regions, and increased regulatory pressures and norms. Competitors specialize in various business models in order to cater to the diverse needs of high net worth individual (HNWI) clients. The segment’s participants differ in terms of size, corporate structure and clients. Such levels of diversification indicate that the wealth management segment can sustain a variety of profitable business models. Wealth management business models differ in terms of firms, size, corporate structure, clients targeted and revenue generated. Many firms and organizations share common features in terms of their core activities, company history, operations and services, providing a basis for rudimentary or arbitrary business model classifications. It is possible to identify basic wealth management models based around banks or other custodial institutions; broker-dealers and stockbrokers; and investment managers and family offices. These models are not mutually exclusive. One by-product of financial integration means that wealth management firms with a banking background, often have both broking and investment management arms. Similarly, many broking firms have diversified into investment management and other activities to generate more reliable and higher-quality revenue streams.


Scope
• This report provides a comprehensive analysis of wealth management models adopted by various wealth management companies in the financial services industry
• It provides information on current market size and future prospects of the wealth management industry in developed and emerging markets
• It details various approaches adopted by wealth market operators defining their business model and the scope and benefit underlying thereafter in order to target customers across the industry
• It details the level of market penetration, concentration and consolidation of wealth management models in developed and emerging economies




Reasons To Buy
• Assess the wealth management business models of leading companies in the wealth management industry
• Assess the trends and drivers and the implications on wealth management models
• Make strategic business decisions using historic and forecast market data related to the wealth management business in key regions including Asia-Pacific, Americas and Europe
• It details the various trends and drivers impacting the growth and profitability of wealth management business models



Key Highlights
• The wealth management segment emerged as significant to the financial sector in the late 1980s. Due to an increase in demand, the segment was equipped with a network of investment advisors. Global wealth management growth declined dramatically during 2009−2012 due to the US economic crisis, combined with the Eurozone debt crisis in 2011, resulted in high market volatility and minimal growth that swept away investor assets and deterred them from investing in stocks and bonds.
• The Asia-Pacific’s HNWIs population recorded significant growth during 2008−2012 at a CAGR of 11.27%, increasing from 2.4 million people in 2008 to 3.7 million people in 2012. Japan was the largest HNWI consumer market and accounted for 52.3% of the region’s total HNWI population. China is the second-largest market followed by Australia with respective shares of 17% and 5.1%. During the forecast period, the number of HNWI customers in this region is forecast to increase from 3.9 million people in 2013 to 5.1 million people in 2017, at a CAGR of 6.87%.
• In terms of HNWI wealth, the Latin American region recorded an impressive CAGR of 9.82% during the review period. The HNWI wealth of this region increased from US$19.7 trillion in 2008 to US$28.7 trillion in 2012. Over the forecast period, the value of HNWI wealth in this region is forecast to increase from US$30.1 trillion in 2013 to US$35.1 trillion in 2017, at a CAGR of 3.93%.
• The wealth management segment in emerging economies has recorded a greater level of market penetration. The growth and development of the wealth management segment was led by the advent of advanced technology and cost of infrastructure. These market drivers result in conducting decisions in respect with growth and development of the industry enabling UHNWIs to invest appropriately. Australia adopted the highest market penetration rate at 6% with a total of 2,585 UHNWIs and 155 wealth management institutions followed by Poland which grew at a penetration rate of 3.1%. Poland comprises of a total of 15 wealth management institutions providing services to 487 UHNWIs.

2020 Foresight Report: No Magic Bullet - Wealth Management Models

Table of Contents
1 Executive Summary
2 Wealth Management Business Models
2.1 Bank and Custodial Institutions
2.1.1 Key trends and drivers
2.2 Broker-Dealers (Stockbrokers)
2.2.1 Key trends
2.3 Asset/Wealth Managers
2.3.1 Key trends
2.4 Single Family Offices and Multi-Family Offices
2.4.1 Outlook of single and multi-family offices
2.4.2 Key trends
3 Best Practices Framework Adopted by Wealth Management Segment
3.1 Julius Baer: A Transformational Acquisition
3.1.1 Objective
3.1.2 Strategy
3.1.3 Impact and result on the wealth management business model
3.1.4 Future growth and expansions
3.2 RBC Wealth Management: Establishment of a Unified Management Account Program
3.2.1 Objective
3.2.2 Strategy adopted: an open architecture
3.2.3 Implementation
3.2.4 Impact and result on the wealth management model
3.3 AMP Wealth Management: Strengthening Relationship with Customers to Drive Customer Advocacy
3.3.1 Challenges faced
3.3.2 Strategy adopted
3.3.3 Results
3.3.4 Future outlook and opportunities
3.4 UBS: the Pros and Cons of Size, Scope and Integration
3.4.1 Challenges faced
3.4.2 Various strategy adopted and its implications
3.4.3 Size and scope
3.4.4 Expansion plans
3.5 Goldman Sachs: Generating synergies
3.5.1 Creating synergy in the wealth management segment
3.5.2 Wealth management business model flaws
3.5.3 A new redefined business model
4 Wealth Management Models-Competitive Landscape and Industry Dynamics
4.1 Defining the landscape of wealth management model
4.2 Level of Market Penetration
4.2.1 Analysis of key developed markets
4.2.2 Analysis of key emerging markets
4.3 Concentration
4.3.1 Analysis of key developed markets
4.3.2 Analysis of key emerging markets
4.4 Consolidation
4.4.1 Analysis of key developed markets
4.4.2 Analysis of key emerging markets
5 Market Sizing
5.1 Global Market Size
5.2 Asia-Pacific
5.2.1 Regional market size and forecast
5.3 Americas
5.3.1 Regional market size and forecast
5.4 Europe
5.4.1 Regional market size and forecast
6 Appendix
6.1 Methodology
6.2 Definition
6.3 Background
6.4 Contact Us
6.5 About Timetric
6.6 Disclaimer


List of Tables
Table 1: Top-20 Wealth Managers in the US by AuM, 2011
Table 2: Acquisitions Across Wealth Management Models in Developed Markets
Table 3: Acquisitions Across Wealth Management Models in Emerging Markets
Table 4: Top-10 Key Global Private Banks by AuM
Table 5: Top-10 Major Global Wealth Managers by AuM
Table 6: Top-10 Global Family Offices by AuM
Table 7: Growth of HNWIs in Asia-Pacific Region by Volume (Million), 2008–2017
Table 8: Growth of HNWI Wealth in Asia-Pacific Region by Value (Trillion), 2008–2017
Table 9: HNWI Population in Asia-Pacific Wealth Management Segment (Number in Thousands), 2008-2012
Table 10: Top-10 Private Banks in Asia-Pacific by AuM
Table 11: Top-10 Wealth Managers in Asia-Pacific by AuM
Table 12: Top-10 Family Offices in Asia-Pacific by AuM
Table 13: Growth of HNWIs in the Americas Region by Volume (Million), 2008–2017
Table 14: Growth of HNWI Wealth in the Latin American Region by Value (Trillion), 2008–2017
Table 15: HNWI Population in the Americas Wealth Segment (Number in Thousands), 2008-2012
Table 16: Top-10 Private Banks in the Americas by AuM
Table 17: Top-10 Wealth Managers in the Americas by AuM
Table 18: Top-10 Private Banks in the Americas by AuM
Table 19: Growth of HNWIs in European Region by Volume (Million), 2008–2017
Table 20: Growth of HNWIs Wealth in European Region by Value (US$ Trillion), 2008–2017
Table 21: HNWI Population in the European Wealth management Segment (Number in Thousands), 2008-2012
Table 22: Top-10 Private Banks in Europe by AuM
Table 23: Top-10 Wealth Managers in Europe by AuM
Table 24:Top-10 Family Offices in Europe by AuM
Table 25: HNWI Wealth Band and Group Definitions


List of Figures
Figure 1: Trends and Profitability Drivers Impacting the Overall Profitability of Wealth Management Firms
Figure 2: Outlook of Family Offices in Canada, 2012
Figure 3: Outlook of Family Offices in US, 2011
Figure 4: Gap Analysis by SWOT of Single Family Office in Luxembourg
Figure 5: Gap Analysis by SWOT of Multi Family Office in Luxembourg
Figure 6: Geographical Origins of Clients and Targets with Respect to Family Offices Market
Figure 7: Framework of Julius Bear Group on Acquisition in Wealth Management
Figure 8: Framework of RBC Wealth Management’s Case Study
Figure 9: Framework of AMP Wealth Management’s Case Study
Figure 10: Framework of UBS Wealth Management’s Case Study
Figure 11: Transformation in Business Model for Changing Requirements of Clients
Figure 12: Market Penetration of UHNWIs in Developed Markets (%), 2012
Figure 13: Market Penetration of UHNWIs in Emerging Markets (%), 2012
Figure 14: Degree of Concentration of Wealth Management in Developed Markets, 2012
Figure 15: Degree of Concentration of Wealth Management in Emerging Markets, 2012
Figure 16: Global Map Depicting Degree of Concentration of Wealth Management in Various Markets, 2012
Figure 17: Global Snapshot of HNWI Wealth and Population, 2012
Figure 18: Global Number of HNWIs (Million), 2012
Figure 19: Total Number of HNWIs in Various Regions of the World (Million), 2012
Figure 20: Value of Global HNWIs’ Wealth (US$ Trillion), 2012
Figure 21: Share of AuM Under Key Models
Figure 22: Snapshot of Asia-Pacific HNWI Wealth and Population, 2012
Figure 23: Growth of HNWIs in Asia-Pacific Region by Volume (Millions), 2008–2017
Figure 24: Growth of HNWI Wealth in Asia-Pacific Region by Value (Trillions), 2008–2017
Figure 25: Snapshot of Asia-Pacific HNWI Population by Key Countries (Number in Thousands), 2008-2012
Figure 26: Investable Wealth in Key Countries and Drivers
Figure 27: Growth Prospects of Investable Wealth in Key Countries and Drivers
Figure 28: Snapshot of the America HNWI Wealth and Population, 2012
Figure 29: Growth of HNWIs in the Americas Region by Volume (Million), 2008–2017
Figure 30: Growth of HNWI Wealth in Americas by Value (Trillions), 2008–2017
Figure 31: Snapshot of Americas HNWI Population by Key Countries (Number in Thousands), 2008-2012
Figure 32: Investable Wealth in Key Countries and Drivers, 2008-2017
Figure 33: Snapshot of European HNWI Wealth and Population, 2012
Figure 34: Growth of HNWIs in European Region by Volume (Millions), 2008–2017
Figure 35: Growth of HNWIs Wealth in European Region by Value (US$ Trillion), 2008–2017
Figure 36: Snapshot of the European HNWI Population by Key Countries (in Thousands), 2008-2012
Figure 37: Investable Wealth in Key Countries and Drivers

Published By: Timetric
Product Code: Timetric621


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