Archive for November, 2012

BofA May Fully Vend Stake in MUFG JV – Analyst Blog

As part of its global strategy to move away from international
wealth management business, Bank of America
( BAC ) is in talks with Mitsubishi UFJ
Financial Group, Inc.
( MTU ) to
sell its remaining stake in the joint venture (JV) – Mitsubishi UFJ
Merrill Lynch PB Securities Co. The announcement related to the 49%
stake sale, worth approximately ¥40 billion ($487 million), could
come as early as next month.

The JV was formed in May 2006 by MUFJ and Merrill Lynch Co.
Subsequently, during the height of the financial crisis in 2008,
BofA acquired Merrill Lynch and hence, the JV was integrated into
BofA’s operations. Currently, the JV employs about 440 people
(about 80% coming from Merrill Lynch).

The JV provides wealth management services to clients with assets
worth more than ¥100 million. Moreover, it remains a profitable
venture, with profits of nearly ¥6.8 billion ($86.1 million) in the
fiscal year ended March 31, 2012.

Yet, BofA chose to divest its stake in the JV, as the company has
been trying to consolidate its global operations and doing away
with its non-core businesses. Over the last two years, the company
has completed the divestiture/closure of more than 20 non-core
assets to strengthen its capital position in order to improve its

In August 2012, BofA announced the divestiture of its
international wealth management operations to Julius Baer Group for
nearly CHF860 million ($882 million). The deal, which is still
subject to regulatory approvals, is expected to close by the end of
this year or early next year. Additionally, the divestiture did not
include the aforesaid JV.

Moreover, for MUFG, the purchase of the remaining JV stake will
further strengthen its dominance over the wealth management market
as well as stabilize the revenue base. This would also enable MUFG
to further improve its relationships with Morgan
( MS ), with whom it has three separate JVs.

Currently, BofA retains a Zacks #3 Rank, which translates into a
short-term Hold rating. The company has made considerable progress
in improving its capital base. We believe that the above mentioned
divestiture, if finalized, will further aid the company in
attaining its goal. This could serve as a slight positive for the
company, thereby leading to modest upward estimate revision. This,
in turn, could improve the company’s Zacks Rank.

BANK OF AMER CP (BAC): Free Stock Analysis

MORGAN STANLEY (MS): Free Stock Analysis Report

MITSUBISHI-UFJ (MTU): Free Stock Analysis

To read this article on click here.

Zacks Investment


Friday, November 30th, 2012 EN No Comments

New and Improved

Lately, it seems everywhere I turn, things are “new and improved.” Perfectly good items that have served me well no longer exist.  Recently, I needed new running shoes to replace my worn out pair.   The make and model I was using had been discontinued; the new version is completely re-modeled and would serve better as a torture tool than an exercise incentive.  It took more than a dozen tries to find a pair that were comparable to the old ones.  I found myself becoming nostalgic for my childhood days, when I would accompany my mother to the local shoe store for her annual purchase of penny loafers—always the same size and model.  I thought she was so boring; now I understand that she had found something that worked well for her, and she knew better than to waste time replacing it with something different.  I envy the fact that she could count on those same shoes being available each time. 

            How does this relate to private wealth management?  We don’t sell products, or at least those of us who believe ourselves to be pure vehemently claim that we don’t.  And yet, our industry runs the very same risk that product manufacturers do:  By always seeking to produce  “new and improved,” we run the risk of discontinuing advice and services that are quite good.  We also risk frustrating our clients in the process.  I might sound like an old (or middle-aged) curmudgeon, but I think as we consider how to bridge gaps between advisor and client, we must take a serious look at what needs to be “new,” to be  “improved” and when “new” might mean just the opposite for clients.             

            Rather than resorting to a mid-life rant against change, I have spent some time reflecting on these developments, considering when they are for good and when for ill.  On the whole, I find that there have been more positive than negative  “new” developments.  I wonder, though, whether the drive for new and improved has the collateral effect of eliminating some very good products and services and misses a fundamental point about the nature of our work.  Here are a few examples.



Financial institutions are constantly searching for new investment offerings, sometimes re-packaging products in new names.  Despite the fact that hedge funds have always had a wide range of returns and aren’t per se superior to other investments, these  “products,” which were once the purview of the few, are being offered through newly constructed investment vehicles for a broader client base.  Similarly, many investment advisory firms seeking to attract ultra-high-net-worth families have noticed that these clients often have or want their own family offices.  So, they have either added the label  “multi-family office” to existing services or carved out new divisions to do so.  In the process, they often diminish their existing expertise – investing – in the quest to replace it with new services that are more administrative in nature.  On the legal and accounting side, many firms have spent the past decade transitioning from practices of developing highly customized plans to offering packaged solutions.



Technology has transformed the private wealth management industry.  Families can now connect with each other and their advisors through secure websites, video conferencing and the like. This “new” is generally an improvement, though it runs the risk of being taken to an extreme if it ignores the reality that  “face time” matters.  At the same time, it’s astounding that a system doesn’t yet exist to provide families with foolproof consolidated reporting across all entities and investments, which could help them, as well as their advisors, understand all that they own and make more informed decisions.  The gap in sophisticated reporting offerings must be closed soon with advanced technology for real improvement to exist.


Tax Structures

The year 2012 is the apex of the decades’ long trend that’s led to an ever expanding group of families who have created complex estate tax structures.  Today, it’s hard for a family to create a simple estate plan without at least a handful of trusts.  The acronyms abound, and the new relationships they create can be crushing to the ways that family members relate to each other.  This is where I especially wonder whether  “new” is necessarily improved.  Despite their desire for simplicity, families seem unable to hold back their advisors who offer  “new” and  “improved” structures all the time.  The families are reeling under all this complexity, and the long-term effects aren’t always positive.


Reality Check

The push for  “new” and  “improved” seems ironic and contrary to the fact that what we’re working with is often neither new nor can it always be improved.  That is, there are some simple facts at the core of private wealth management that will never change: We’re born, we live and we die.  We’ll leave something behind, and that includes more than material goods.  It’s perhaps better to acknowledge these facts than to create the illusion that if clients buy a certain product, investment, trust or other offering, we can change this reality.  I wonder whether we might provide greater comfort by acknowledging the “old” and ”true,” at least a bit more often.  I’m sure that my mother walked comfortably in each pair of those loafers that she bought.  I wonder today what comfort our clients receive from the products and services on offer in the private wealth management industry.  We must seek to strike a balance, and determine when new is improved and when old is just right.


Friday, November 30th, 2012 EN No Comments

Withering Wirehouses? Not Quite.

Stick around the brokerage industry long enough, and you’ll probably get sick of the ol’ saying, “Advisors vote with their feet.” While it certainly has some truth to it, the move very often is a grab for a new, higher signing bonus. So staying in one place really does speak volumes. 

Many industry propellerheads have forecasted an exodus of wirehouse advisors to the independent channel as retention bonuses unwind this year. But REP.’s 22nd annual Broker Report Card Survey shows that—with the exception of Morgan Stanley—most advisors at the national brokerages feel just fine where they are. In fact, 93 percent say they likely will still be working at their current firm two years from now.

“This is a very high level of retention,” says Philip Palaveev, founder and CEO of The Ensemble Practice, a consulting group in Seattle. “This means that right now, most advisors are set.”

In fact, most firm ratings were higher than in last year’s survey. Firms that didn’t go through large-scale merger integrations were at the top again this year, with Edward Jones breaking Raymond James Associates’ two-year winning streak to take back its position as a perennial favorite.

“Edward Jones and Raymond James, they have a much more clear mission that has not been damaged through these monster integrations and acquisitions and mergers,” says Tim Welsh, president and CEO of consulting firm Nexus Strategy.

UBS maintained its position as third overall but first among the four wirehouses, scoring an overall rating of 8.2 out of 10 (up from 7.7 in 2011). Firms with merger integration issues were at the bottom of the heap, although Wells Fargo improved its score significantly (7.6, up from 6.4 last year).

The two goliaths of the wirehouses—Merrill Lynch (Bank of America) and Morgan Stanley (formerly Morgan Stanley Smith Barney)—still struggle with integration issues, and disgruntled advisors are locked in by retention packages. Merrill saw a slight uptick from last year (7.3 from 7.2 in 2011). Morgan Stanley’s advisors are clearly not a happy bunch by any means, giving the firm a 4.5, down from last year’s 5.7, likely because of issues surrounding the rollout of its new technology platform. The quality of the firm’s technology/advisor workstation had the lowest score among the firms (3.8 versus the average across firms of 7.4).  

“But there’s no doubt about it that some of the scores of Morgan Stanley are at levels of anger, rather than just dissatisfaction,” Palaveev says.

Sitting Pretty

That said, by and large advisors are pretty satisfied where they are, with ratings creeping up on categories such as products and research, compensation and benefits, compliance support and even overall performance aspects. Most advisors said their own firm was the best wirehouse to work for, all things considered, with Morgan Stanley being the outlier. (Only 36.1 percent said it was the best to work for.)

What accounts for the happiness? The markets, for one: For the year ending Nov. 15, the SP 500 Index was up 7.85 percent. For the three years ending Nov. 15, the SP is up 22.35 percent. About 65 percent of advisors said their annual gross production had increased from a year ago.

“Usually from my experience people are happy when the markets are up,” Nexus’ Welsh says. “They’re willing to overlook the stuff that drives them crazy, cause they’re making more money.”

Distance from the crisis, time to get acclimated to the mergers, and other changes at these firms also likely contributed to increased satisfaction. Advisors have had three to four years to let it sink in. 

“Friction in the system eventually gets moved out, and people resign to their fate: ‘Yep, we’re part of BofA,’” Welsh says.

And those who were unhappy with the changes coming out of the crisis have likely jumped ship by now. According to data by Cerulli Associates, the wirehouses lost 2.4 percent of its advisor count in the last four years. 

With the crisis four years behind, most of the unsatisfied ranks and lower producers from these firms have likely been flushed out of the system, leaving those who are satisfied employees, says Alois Pirker, research director at Aite Group. 

Allure of Independence

That is not to say that there won’t be more movement out of the wirehouses. The allure of independence is persistent, and the winding down of retention packages will likely lead some to the exits.

Twenty-two percent of respondents said they have considered going independent in the past year, up from 18 percent last year. Morgan Stanley (36 percent) and Wells Fargo (26 percent) advisors are more likely to consider it.

Many large teams are breaking away to the RIA model, and a few prominent acquisitions of RIA firms are making it even more alluring. In November, Los Angeles-based Luminous Capital was bought by First Republic Bank for $125 million in cash. The team left Merrill in 2009.

“That had to send shockwaves to every big team,” says Todd Taylor, partner at Heidrick Struggles, a global executive search and consulting firm. “It makes the allure of independence for the megateams out there to be so much more enticing, and that’s only going to continue.”

Lately, the headlines have painted a dire picture of the wirehouse channel, with predictions of significant exits as the golden handcuffs come off. But by no means has there been a mass exodus from these firms; in fact, last year the channel increased its advisor count by 1.4 percent.

Going forward, the exodus will likely resemble the current of a creek, not of a big river that many have predicted. The wirehouses are expected to lose only 1 percent of their advisor force by 2016, Cerulli Associates estimates. And these firms still have the largest asset market share in the industry, at 26.4 percent as of 2011, Cerulli says.

“I’ve never been a believer that somehow the wirehouse model is falling apart and disappearing,” Palaveev says. “Day after day, we see a team leave a wirehouse and go independent. But if we really count them, at the end of the day we will find that there’s probably no more than 500-600 advisors a year that go independent.”

There’s a big difference between what people are thinking and what they actually do. It still stands that most respondents don’t plan on moving anywhere.

‘The Wheels Are Coming Off’

Advisors held mixed opinions on the integrations this year.

Wells Fargo advisors have a slightly better view of their integration than last year, with 24 percent viewing the impact on their business as positive (up from 20 percent last year); 12 percent view it negatively and 32 percent are neutral.

Four years ago Well Fargo Co. acquired Wachovia, which in turn had bought A.G. Edwards in 2007. Wells had more time to get past the heavy lifting, Taylor says, since they were the first to go through an integration.

At Bank of America/Merrill Lynch, more advisors believe the merger has had a positive impact on their business (27 percent) than a negative one (17 percent), while 35 percent had a neutral opinion. (Where percentages don’t add up to 100, that means some advisors didn’t respond.) 

“Merrill Lynch has done a good job limiting the extensive cuts and reductions that have taken place at Morgan Stanley,” Taylor says. “The real question is, will the bank allow advisors to feel like they can pursue building their independent practices, or will they be seen as trying to drive a wedge between the client and advisor?”

That’s not to say that it’s all rosy at Merrill. In their comments in the survey, advisors voiced concerns about BofA’s management and account minimums of $250,000. Others talked about the contracts and the lack of better options that were holding them down.

“The heavy lifting is happening at Morgan Stanley,” says Pirker. “That’s where a new platform is being created.”

A whopping 63 percent of MS advisors believe the integration had a negative impact on their business, up from 49 percent last year. One advisor wrote, “The wheels are coming off,” and, “They have lost their way.”

Many of the problems stem from the firm’s technology integration, Pirker says. Instead of consolidating on either the Dean Witter or Citi technology platform, as was expected, MS designed a completely new platform that both sides of the house had to learn. In the survey, advisors called the new platform “bulky,” “counterintuitive,” “terrible,” and a “joke,” among other things. Respondents gave the firm’s technology a 3.8 out of 10.

Other issues may stem from the cuts Morgan has put in place. In August, the firm cut the number of brokerage complexes from 118 to 86 and its non-producing branch managers from 150 to 86, according to published reports. Sources say the firms’ combined number of full-time managers was even higher before the merger.

“Unfortunately this is a trend that has been occurring over the last several years, since the merger,” Taylor says. His firm’s estimate is that the ratio of advisors to non-producing managers has nearly doubled since 2008, from 55 to 1 to over 90 to 1. “While they have many more producing managers who perform some management duties while also managing a book of business, the reduction of so many non-producing managers takes away considerable leverage in both the recruiting and coaching efforts, and ultimately in the retention effort as well.”

According to one Morgan Stanley branch manager who wrote in, a number of branch managers will see their compensation cut by between 40 and 70 percent.  “Many of the managers are just waiting to get their year-end bonus in February (of which 50 to 75 percent will be deferred) and then leave the firm to pursue other opportunities,” the advisor wrote.

Chief Executive James Gorman has set a target of 20 percent for pre-tax operating margins, but in the third quarter, margins were down to 7 percent.

“Everybody goes through their period where they’re the slow rabbit,” says Frank LaRosa, president and CEO of Elite Recruiting Consulting. “But they’re cutting things that advisors need to help service their clients, and that is counter-productive to growing top-line revenue.”       

How This Survey Was Conducted:

Between Sept. 6 and Oct. 26, 2012, REP. e-mailed invitations to participate in an online survey to REP. print subscribers and advisors in the Meridian-AIQ database at the following firms: Edward Jones, Merrill Lynch, Morgan Stanley, Raymond James Associates, UBS and Wells Fargo Advisors. By Oct. 26, 3,402 completed responses were received. Reps rated their current employers on 33 items related to their satisfaction. Ratings are based on a 1-to-10 scale, with 10 representing the highest satisfaction level. They were also asked additional questions about their firms. And respondents were given space to post their own opinions,


Friday, November 30th, 2012 EN No Comments

CfC Stanbic targets cheap deposits from millionaires

Money Markets

Money Markets


CFC Stanbic Bank chief executive officer, Greg Brackenridge during the bank’s Bell ringing ceremony to mark commencement in trading of new shares at the Nairobi Securities Exchange at the Nation Centre, Nairobi on November 16, 2012. SALATON NJAU  

In Summary

CfC Stanbic Bank has launched a special account for wealthy investors with a net worth of at least Sh85 million ($1 million), which it hopes will boost growth of its deposits.

The targeted private clients will get premier services, ranging from investment advisory, trust and fiduciary services, specialised lending, managing risk and transactional banking products as well as a dedicated relationship manager.

The account is seen as the bank’s quest for cheaper deposits, as funds from companies tend to be more highly priced than from individuals.

“Those who take up the offering will benefit from the bank’s linkage of international and domestic capabilities,” said a statement from CfC Stanbic Bank after the launch of the rich people’s service on Thursday.

The bank joins the growing number of institutions around the world which are introducing wealth management services for the high networth individuals in response to the rising numbers of millionaires in emerging and frontier markets.


Making the case for how the growth of economies in the Africa region had contributed to individual wealth, Dr Mark Mobius, a Singapore-based emerging market investment expert who visited Kenya early this year to hunt for deals, was recently quoted saying the continent has at least 200 dollar billionaires.

According to Forbes magazine list of the rich, 40 of the top wealthiest people in Africa come from eight countries, including Kenya.

Besides Kenya, the bank has international links with offices and professionals in London, Jersey, Isle of Man, Mauritius, Nigeria, Argentina and South Africa – which handle the high net worth individuals’ investment through its Wealth Management Services division.

“Private Clients service is responding directly to the needs of the country’s wealthy, who are looking for a financial services partner to take care of their often complex wealth management needs,” CfC Stanbic Bank managing director Greg Brackenridge said in the statement.

The wealth management arm of the bank will be headed by Anjali Harkoo who has spent the last 12 years working for leading private banks based in London.

“Exceptional service, individual attention and absolute discretion are at the core of our value proposition to clients. Our aim is to bring exclusivity back to banking” said Ms Harkoo.


Thursday, November 29th, 2012 EN No Comments

Merrill Nabs 10 Advisors Managing $1.07B




Merrill Lynch has hired 10 financial advisors from rival wirehouse firms who managed a total of $1.07 billion in assets and had $7.7 million in fees and commissions.

The majority of those hires, which were completed in the past several weeks, come from Morgan Stanley Wealth Management, representing six of the new hires. Merrill Lynch also hired a three-member advisor team from UBS and one advisor from Wells Fargo to round out the 10 additions to its force.

The hires from Morgan Stanley include Jeffrey Wells in Mill Valley, Calif., Keith Ward in Greenwich, Conn., John Forster in Washington, D.C., Raymond Abbate in Red Bank, N.J., and father-son team Bob Reinert and Craig Reinert in Red Bank, N.J.

Wells comes to Merrill Lynch after having $264 million in client assets under management and $1.5 million in fees and commissions. He came to Morgan Stanley in 2009, and had been with Citigroup before that since 2003, according to his public registration records with the Financial Industry Regulatory Authority.

Ward previously oversaw $136.3 million in client assets and had $1.58 million in production. He joined Morgan Stanley in 2008 following about six years at UBS, his FINRA registration records show.

Forster had $110.2 million in client assets under management and $500,000 in fees and commissions. He became a member of Morgan Stanleys force in 2009, FINRA records show, following 16 years at Citigroup.

Abbate had $102 million in client assets under management and $408,000 in production. He also came to Morgan Stanleys force in 2009 following 16 years at Citigroup, according to his public registration records.

Bob and Craig Reinert had a combined $92 million in assets under management and $526,000 in fees and commissions. Bob Reinert, Craigs father, had been with Morgan Stanley since 2009 following 16 years at Citigroup. Craig Reinert also joined Morgan Stanley at the same time after serving at Citigroup for about one year.

The three-member team coming from UBS includes Charles Mercer, Marguerite Rowland and Dowell Ryan, who are based in Louisville, Ky. Together, they previously had $265.3 million in client assets under management and $2.4 million in production.

Mercer served at UBS for about five years following a stint of more than six years at Morgan Keegan, his FINRA registration records show. Rowland was with UBS for more than eight years, following nine years at Banc One Securities. For Ryan, the new position is a return to Merrill Lynch, having served at the firm for almost 10 years, followed by more than 11 years at UBS.

Also moving over from Wells Fargo is Terry Schurman, who is located in Ponte Vedra, Fla. Schurman previously oversaw $101.9 million in client assets and had $813,000 in production. Schurman spent 12 years at Wells Fargo, according to his registration records, following stints of about two years at First Union and three years at Merrill Lynch.


Thursday, November 29th, 2012 EN No Comments

Mitsubishi UFJ In Talks to Buy BofA-Merrill Stake in Private Bank JV

Mitsubishi UFJ Financial Group  is in talks to buy Bank of America Merrill Lynch out of a private banking joint venture operated by the pair, people with the direct knowledge of the discussion said Thursday.

Associated Press

An announcement on a deal to buy the 49% stake in the business, which would be worth about 40 billion yen, or $488 million, could be made as early as next month, they said.

The deal will likely smooth the path for the Tokyo lender, Japan’s biggest bank by assets, to ramp up further coordination with partner Morgan Stanley in asset management and private banking in the future, one of the people said.

As well as controlling over a fifth of voting rights of Morgan Stanley, MUFG already operates three separate joint ventures with the Wall Street bank and has ambitions to build up the duo’s alliance.

For Bank of America Merrill Lynch, the move is part of an international strategy to focus on global corporate banking and markets that has seen it pull back from wealth management operations.  In August, it agreed to sell international wealth management businesses based outside of the U.S.–not including Mitsubishi UFJ Merrill Lynch PB Securities–to Julius Baer, the Swiss private banking group.


Thursday, November 29th, 2012 EN No Comments

Expert advice on business succession a key concern for high net worth business …

— /CNW/ – Business succession has very quickly
become one of the top concerns identified by high net worth clients in
a second annual survey by RBC Wealth Management. At the same time,
retirement planning and tax minimization remain other key concerns
expressed by clients.

This survey was conducted by RBC Wealth Management as part of one-on-one
planning sessions with clients. In the past year, approximately 1,800
sessions were conducted across Canada wherein these concerns were
identified as the most pressing for high net worth clients.

“We are seeing a recent shift in the concerns of our high net worth
clients. While they continue to seek out advice on retirement planning,
and as part of that, tax minimization to ensure a successful
retirement, they are also now increasingly putting on their
business-owner hat and seeking out advice around the succession of
their business” said Howard Kabot, vice-president, Financial Planning,
RBC Wealth Management Services. “Business owners, because of
demographics and because of our offerings and expertise in this field,
are realizing issues around the successful transition of their business
are not only crucial to the future of their businesses but also to the
well-being of their own personal and family’s financial future.”

RBC Wealth Management has an in-house highly-specialized team of
professionals that are available to work with Wealth Management Canada
advisors and private bankers to offer high net worth clients a full
array of financial advice. The RBC Wealth Management Services team
provides access to a vast array of products and services geared towards
meeting the needs of high net worth clients, including business owners.

“Focusing on the needs of business owners has become a huge priority for
us,” said Anthony Maiorino, vice-president and head, RBC Wealth
Management Services. “To that end, we have created the Business Owner
Planning Team within RBC Wealth Management Services with best-in-class
experts specializing in the needs of business owners. In the last year,
high net worth business owners across Canada were offered the
opportunity to take advantage of complimentary Business Owner Planning
Sessions, which we feel has resulted in this increased demand for our

“RBC Wealth Management is unique in offering a complete end-to-end level
of highly specialized service to clients,” said Maiorino.

About RBC Wealth Management
RBC Wealth Management is one of the world’s top 10 largest wealth
managers. RBC Wealth Management directly serves affluent,
high-net-worth and ultra high net worth clients in Canada, the United
States, Latin America, Europe, the Middle East, Africa and Asia with a
full suite of banking, investment, trust and other wealth management
solutions. The business also provides asset management products and
services directly and through RBC and third-party distributors to
institutional and individual clients, through its RBC Global Asset
Management business (which includes BlueBay Asset Management). RBC
Wealth Management has more than C$562 billion of assets under
administration, more than C$324 billion of assets under management and
approximately 4,300 financial consultants, advisors, private bankers
and trust officers.



Wednesday, November 28th, 2012 EN No Comments

The wealthy? You’ll find them on the internet

The richer you are the more likely you are to use the internet and mobile applications to create, manage and spend your money.

This is according to a study by wealth management firm SEI, Standard Chartered Private Bank and research company Scorpio Partnership, which surveyed more than 3,400 individuals with an average net worth of $1.9 million (€1.47 million).

Entitled The Futurewealth Report: The digital world of the Futurewealthy, the study found that 56% of respondents believed technology contributed to their ability to create wealth – mainly by making communication easier and facilitating networking, but also by providing more business opportunities thanks to e-commerce and marketing. The figure increased to 76% for the richest individuals in the sample, those with assets of more than $4 million.

This trend is expected to continue in the future, with 77% of respondents – and 92% of the richest – saying the internet would help them create wealth in the next five years.

The wealthiest individuals in the sample had on average four digital devices – computers, tablets or smartphones – and spent more than 48 hours every week online, 13 more than the remaining respondents. They also spent more money on the internet, with an average of $15,400, compared with $5,700 for the rest of the sample.

More than six in 10 respondents thought that online networking was important to wealth creation, and many already used social media to communicate with other wealthy individuals. Seventy-one percent of respondents had a Facebook profile and 31% used LinkedIn.

The study also found that there were differences in the way the rich engaged with technology in Asia and in the west. Wealthy Asian individuals were more active on new media than their western counterparts, spending up to one and a half hours longer online every day.

Seventy-two percent of Asia’s wealthy used apps to manage their banking and financial activities, compared to only 46% of western high net worth individuals.

According to Al Chiaradonna, senior vice-president of SEI’s Global Wealth Services, the study shows that financial services providers should use technology to better connect with their wealthiest clients.

“With the rise of a tech-savvy wealthy segment, businesses – especially wealth management firms, banks and other high-end service providers – need to adapt to the increasing demands for and expectations of digital expertise,” he said in a statement. “[They] need to have the most up-to-date technology platforms and infrastructure.”


Wednesday, November 28th, 2012 EN No Comments

Ameriprise Nabs Morgan Team in Illinois




With almost 40 years of combined experience, the team of Bill Duncan and Ziv Ohel left Morgan Stanley Wealth Management to join Ameriprise a little less than two weeks ago.

The two manage just short of $200 million in assets from their dealings with multi-generational family clients. Ohel reported that they made the move because they liked the budgeting and financial planning offerings at Ameriprise and felt it was a good fit for their team structure as well.

We had a feeling when we went into this about a month ago [Ameriprise] would probably be the place, Ohel said in a phone interview. But we always tell clients that if we are going to move or upgrade them, theyre counting on us to do the due diligence or tire kicking.

The two had worked together at Morgan Stanley wealth management since 2005. Ohel started out his career at Merrill Lynch in 1992 right after college before moving to Morgan Stanley in 1999. Duncans career began in 1996, and he was at U.S. Bancorp in Chicago, Ill., before joining Morgan Stanley.

The teams office manager, Eteri Reimer, is following them to Ameriprise, and Ohel said they will also be hiring a new administrative assistant and someone to help with the technology side of their practice.

Last month, the firm added another Morgan Stanley team in Westborough, Mass., and had a total of 2,328 advisors as of Sept. 30.


Wednesday, November 28th, 2012 EN No Comments

Rodney McLauchlan Expands Board of Directors Role to Bring New …

PONTE VEDRA BEACH, Fla., Nov 27, 2012 (GlobeNewswire via COMTEX) —
via PRWEB – Eleven years ago, Kristin and Rodney McLauchlan, along with a group of prominent local investors, started a boutique wealth management company founded on a single vision: provide incredible service based on the intimate financial relationships with our clients. With Kristin as the CEO and visionary leader, and Rodney as a founding Board member and the defacto head of business development, the company, then known as Legacy Trust Company, flourished.

Today, isolating its business on the Family Wealth Offices segment of the wealth management industry, the company, now Legacy Trust Family Wealth Offices ( ), has grown to be a community leader and one of the strongest Family Wealth Offices in the state. Today, at a company-wide staff meeting, Kristin McLauchlan announced that Rodney McLauchlan would take on a more active role, now with less of an eye toward business development and more so on being able to offer clients new opportunities.

Chairman CEO Kristin McLauchlan feels that the firm is essentially committing more resources to further enhance the client experience. Said Kristin McLauchlan, “The concept of bringing Rodney back is to use his expertise to help our clients. He frees up some of my time so I can focus more on our existing client relationships as well as spend time with the philanthropic side of the business.” She added, “A person with Rodney’s talent adds scope to what we can now provide for our client families.”

Utilizing Rodney’s background in banking and strategic consulting as well as leveraging his Board relationships, the company is in a better position to find and research private equity opportunities for its clients and perhaps identify global investment opportunities. Said Ms. McLauchlan, “We want to provide some of the out of the box things we don’t offer today that our clients have recently asked us for.”

Said Rodney McLauchlan, “I am eager to spend more time with the team and the clients at Legacy Trust.” He added, “This step allows Kristin to take the company to another level. It will certainly be rewarding to work on things about which I am passionate to help our clients reach their financial goals.”

About Rodney McLauchlan

Mr. McLauchlan began his career in investment banking at Bankers Trust Company where he was an Executive Vice-President and a member of the bank’s management committee. Mr. McLauchlan lived in Europe and Asia and was responsible for the bank’s investment banking business in those regions prior to becoming global co-head of investment banking in New York. Subsequent to Deutsche Bank’s acquisition of Bankers Trust, Mr. McLauchlan was the Chief Executive Officer for Deutsche Bank in Latin America.

Mr. McLauchlan is also Senior Advisor to Sateri Holdings Limited (Sateri), Shearman and Sterling, LLP, Global Strategic Associates and a consultant to Triple Point Technology. Sateri is a company headquartered in Shanghai, China and is one of the world’s largest integrated manufacturers of specialty cellulose and celluloric fibers with major forestry resources and mills in Brazil and China. Shearman and Sterling, LLP, is a prominent global law firm headquartered in New York with approximately 900 attorneys around the world. Global Strategic Associates is an international advisory firm headquartered in New York. Triple Point Technology is a global software company headquartered in Connecticut.

He is also a board member of Perfin Investimentos, a major Brazilian money manager and wealth management firm, headquartered in Sao Paulo, Brazil. He is a member of the Supervisory Board of Global Collect, a global payments service provider based in the Netherlands. He is also an emeritus board member of The Wharton School at the University of Pennsylvania and a Trustee of The Bolles School Board of Trustees.

Mr. McLauchlan earned an MBA from The Wharton School and a BA in Economics from The Federal University of Rio de Janeiro, Brazil. He also holds an APC in Federal Taxation from New York University. He currently resides in Ponte Vedra Beach, Florida, and claims as his most significant accomplishment his family — wife Kristin and their five children.

About Legacy Trust

Legacy Trust Family Wealth Offices of Ponte Vedra Beach, FL is the only firm of its kind in North Florida, a boutique wealth management firm founded “by families, for families,” focusing on the preservation of generational wealth. The largest independent firm of its kind in Florida, Legacy Trust provides discerning families and foundations with an alternative to the standard services offered by institutional bank and brokerages. Legacy Trust offers its clients full-concierge financial oversight and generational wealth management. For information, please call 904.280.9100 or visit .

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SOURCE: Legacy Trust Family Wealth Offices

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