Overview 1
Catalyst 1
Summary 1
Methodology 1
Executive Summary 2
Intesa Sanpaolo's wealth management service is undergoing consolidation but is performing well 2
Italy continues to be the 'sick man' of Europe 2
HNWs are defensively positioned, but their risk appetite is beginning to increase 2
Wealth managers in Italy are strong at providing HNWs with core needs 3
Table of Contents 4
Table of figures 5
Table of tables 6
Special Feature: Intesa Sanpaolo's wealth management 7
The megamerger looks set to provide Intesa Sanpaolo's wealth management with advantages in the long run 7
So far Intesa Sanpaolo has weathered the financial storm better than many large financial institutions 7
Intesa Sanpaolo is undergoing a dramatic transformation and is both trying to reorganize and cope with the tough economic times 7
Intesa Sanpaolo's wealth management operations are also undergoing fundamental changes 8
Intesa Sanpaolo's brand, image and reputation continues to fare well despite the tough climate 9
Intesa Sanpaolo's wealth management offering is above average on almost all fronts 11
Intesa Sanpaolo has been successful at preventing defections, and has good relationship managers 13
Intesa Sanpaolo has the opportunity to build on its strengths and address its weaknesses 14
Key implications for Intesa Sanpaolo: concentrate on individuality and enhancing service provision 14
Key implication for Intesa Sanpaolo's competitors: niche organizations should target areas of current weakness 15
Italy's wealth 16
Italy has few attractive asset classes at present 17
Inflows into deposits continue, but there may be some signs of life returning to the equities markets 18
Bonds are becoming less attractive 19
Short term interest rate plummets 20
Unemployment is on the rise as average real wages fall 21
The Italian HNW investor 23
Italian HNWs are becoming more tolerant of risk in a quest for returns, but currently remain defensively positioned 23
Italian investors are changing their risk appetite, but their understanding of the current conditions is weak 23
Wealth management service implication: HNWs need education to attend to structural ignorance 25
Innovative example from Switzerland: UBS is investing in educating its clients 26
Innovative example from the UK: Baker and McKenzie believe education is equally important for wealth managers due to the changes taking place in the industry at present 27
Relationships are important, but loyalty is low 27
Wealth management service implication: ensure the organizational structure is geared towards providing the best possible service 29
Innovative example from Switzerland: Julius Baer separates into two businesses 29
Italian HNW investors are defensively positioned 30
Despite an appetite for risk, Italian HNWs are cash heavy and light on equities 30
Wealth management service implication: remain aware of clients' specific desires 31
Innovative example from the USA: Advisor Software has developed an application which tailors investment solutions to clients' needs 32
There will be a shift away from deposits over the next two years 32
Wealth management service implication: look abroad for greater opportunities 34
Innovative example from Ireland: BNY Mellon launches new emerging markets equities fund 34
The Italian HNW has mixed sentiments, looking both for wealth preservation and for profit 36
Although they want to find opportunities to profit in the downturn, HNWs retain a tentative streak 36
HNWs are demanding a high level of input and advice from their wealth managers 36
Auxiliary services, especially tax advice, are also in high demand 36
Wealth management implication: offer auxiliary services as a way in which to develop relationships and increase share of wallet 38
Innovative example from the UK: Skandia launches tax planning tool 38
In two years' time, discretionary asset management and tax advice will be in demand as investors continue to seek guidance from their managers 39
Capital protected funds and bonds will be the most popular product category, as HNWs seek greater returns with some security 39
Wealth management service implication: be prepared to develop corporate bond products 41
Innovative example from Ireland: Smith & Williamson launch a short-dated bond fund 42
Proactivity and individuality are key to attracting HNW clients 42
Wealth management service implication: be proactive in the wealth management offering 44
Data tables 45
The Italian wealth manager's view 47
Core wealth management provision is good, but this strength could be leveraged to greater effect 47
Wealth managers are addressing core requirements successfully 47
Despite clients' selection influencers, wealth managers are emphasizing the strengths of their core business to increase share of wallet 49
Providing clients with a range of contacts and ensuring professionalism are the best ways to retain HNW investors 51
Italian wealth managers keep in regular contact with their clients 53
Italian HNWs are more interested in performance than their asset allocations 56
Direct equity investment will be the major resource focus in two years' time 58
APPENDIX 61
Additional survey questions on HNW motivations 61
The drivers of growth in the wealthy population 61
Income growth (combined with inflation, changes in GDP by sector, household savings rates and debt levels) 61
Investment returns (market capitalization, interest rates and bond yields) 61
The following measures are not, in themselves, drivers of wealthy population growth 61
Market capitalization 61
GDP 61
The following measures are not drivers of wealthy population growth except under very restricted circumstances 62
Primary residence value growth 62
Inheritance 62
Methodology 62
Wealth Management Market Leaders Survey 2009 62
Global Wealth Model 62
The UK sub model 62
Global sub model (for all other countries) 63
Forecasting methodology 63
Continuous refinement to the understanding of liquid wealth distribution 63
Datamonitor's wealth numbers compared with other wealth numbers 64
Definitions 64
Western Europe 64
Onshore wealth 64
Liquid assets 64
Further reading 64
Ask the analyst 65
Datamonitor consulting 65
Disclaimer 65
List of Tables
Table 1: Wealth managers' views about the strengths and weaknesses of Intesa Sanpaolo's wealth management services on a scale of 1 to 4 (1 = very low, 2 = somewhat low, 3 = somewhat high, 4 = very high) 11
Table 2: Wealth managers' views about the strengths and weaknesses of Intesa Sanpaolo's wealth management services on a scale of 1 to 4 (1 = very low, 2 = somewhat low, 3 = somewhat high, 4 = very high) 12
Table 3: Wealth managers' views about the strengths and weaknesses of Intesa Sanpaolo's wealth management services on a scale of 1 to 4 (1 = very low, 2 = somewhat low, 3 = somewhat high, 4 = very high) 14
Table 4: Intesa Sanpaolo is well regarded by other wealth managers 14
Table 5: HNW attributes on a scale of 1 to 4 (1 = very low, 2 = somewhat low, 3 = somewhat high, 4 = very high) 25
Table 6: HNW attributes on a scale of 1 to 4 (1 = very low, 2 = somewhat low, 3 = somewhat high, 4 = very high) 29
Table 7: What proportion of your HNWs' portfolios is allocated to the following five asset classes? 31
Table 8: HNWs' portfolio allocation now versus in two years' time 34
Table 9: What are HNWs demanding today? 38
Table 10: In two years' time, how much demand do you expect from HNWs for the following product areas? 41
Table 11: What will determine HNWs' choice of wealth management service over the next two years? 44
Table 12: HNW motivations when it comes to investment decisions 45
Table 13: HNW motivations when it comes to investment decisions 45
Table 14: HNW motivations when it comes to investment decisions 46
Table 15: HNW motivations when it comes to investment decisions 46
Table 16: What are your company's greatest strengths and weaknesses? 49
Table 17: What is the most effective means of increasing share of wallet today? 51
Table 18: What is the best way to retain clients today? 53
Table 19: On average, how often do your relationship managers speak by phone to each HNW client? 54
Table 20: On average, how often do your relationship managers speak in person to each HNW client? 55
Table 21: When speaking with clients, what do they most want to talk about today? 57
Table 22: What product areas will your wealth management service focus most resources on in the next two years? 60
List of Figures
Figure 1: Intesa Sanpaolo's brand image and reputation has survived relatively well in the current crisis 10
Figure 2: Intesa Sanpaolo is doing well at indentifying investment opportunities in the downturn 12
Figure 3: Intesa Sanpaolo is performing well across the board when it comes to the people in the organization 13
Figure 4: The Borsa Italiana has been suffering since 2007 17
Figure 5: The outflows from mutual funds continued in 2008, but were slowing by Q3 19
Figure 6: Bond yields plummeted in the latter half of 2008 and in to 2009 20
Figure 7: The interest rate also took a dive at the end of 2008 and in to 2009 21
Figure 8: The labor market has been hit as unemployment is on the rise once more and average real wages are lower 22
Figure 9: HNW investors in Italy have a higher risk appetite than the average European HNW investor 25
Figure 10: There is a lower risk of HNW clients in Italy leaving to find another wealth manager than the average European HNW investor 28
Figure 11: The majority of HNW wealth in Italy is invested in the 'cash or near cash' asset category, with this accounting for 28% of all investments 31
Figure 12: In two years' time, holdings in cash and near cash will reduce, while equities and fixed income will increase 33
Figure 13: Corporate bonds will increase dramatically over the next two years 35
Figure 14: In Italy, HNW investors' greatest demand is for tax advice 37
Figure 15: In two years' time, the greatest demand among HNW investors in Italy will be for capital protected funds or bonds, with 80% of HNW investors demanding this category of product 40
Figure 16: HNW investors in Italy are most influenced by proactivity in bringing ideas to clients in their choice of wealth manager 43
Figure 17: The greatest strength of wealth managers in Italy is their companies' financial stability 48
Figure 18: The best way for wealth managers in Italy to increase share of wallet is to convince clients that your company is financially sound 50
Figure 19: The best way for wealth managers in Italy to retain HNW investors is to give the client several points of contact within the bank 52
Figure 20: In Italy, the wealth management relationship managers speak to clients by phone approximately once a week 54
Figure 21: In Italy, wealth management relationship managers speak to clients in person approximately once a month 55
Figure 22: The majority of clients in Italy want to speak to their wealth manager about performance of their overall portfolio 57
Figure 23: In two years' time, wealth managers in Italy will be focusing most of their resources on direct equity investment 59
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