Archive for August, 2014

Challenges and Opportunities for the Wealth Sector in Brazil 2014 – SYS



LONDON, Aug. 27, 2014 /PRNewswire/ — has added a new market research report:

Challenges and Opportunities for the Wealth Sector in Brazil 2014

– This report is the result of WealthInsight’s extensive research covering the high net worth individual (HNWI) population and wealth management market in Brazil.
– The report focuses on HNWI performance between the end of 2008 (the peak before the global financial crisis) and the end of 2013. This enables us to determine how well the country’s HNWIs have performed through the crisis.

This report is a thorough analysis of Brazil’s Wealth Management and Private Banking sector, and the opportunities and challenges that it faces.

– Independent market sizing of Brazil HNWIs across five wealth bands
– HNWI volume and wealth trends from 2009 to 2013
– HNWI volume and wealth forecasts to 2018
– HNWI and UHNWI asset allocations across 13 asset classes
– Number of UHNWIs in each state and all major cities
– Fastest growing cities and states for UHNWIs (2009-2013)
– Insights into the drivers of HNWI wealth

Reasons To Buy
– The WealthInsight Intelligence Center Database is an unparalleled resource and the leading resource of its kind. Compiled and curated by a team of expert research specialists, the database comprises dossiers on over 60,000 HNWIs from around the world.
– The Intelligence Center also includes tracking of wealth and liquidity events as they happen and detailed profiles of major private banks, wealth managers and family offices in each market.
– With the Database as the foundation for our research and analysis, we are able obtain an unsurpassed level of granularity, insight and authority on the HNWI and wealth management universe in each of the countries and regions we cover.
– Report includes comprehensive forecasts to 2018.

Key Highlights
– At the end of 2013, Brazilian HNWIs held 22.6% (US$219 billion) of their wealth outside their home country, which is line with the global average of 20–30%.
– WealthInsight expects foreign asset holdings to increase to US$281 billion by 2018, to account for 21.2% of the total HNWI assets.
– In 2013, North America accounted for 36.1% of Brazilian HNWIs’ foreign assets, followed by South America with 33.9%, Europe with 14.2%, Asia-Pacific with 11.4%, the Middle East with 2.9% and Africa with 1.7%.
– Brazilian HNWI allocations to North America decreased during the review period, from 39.8% in 2009 to 36.1% in 2013. Increased investments were made in the emerging economies of South America and Asia-Pacific.
– HNWIs are expected to further decrease their levels of investment in North America to 34.0% of foreign HNWI assets by 2018, with investments increasingly being diverted to South America.
Table of Contents
Table of Contents
1.1 Details of this Report
1.2 Definitions
3.1 Political Background
3.2 Economic Background
3.3 Social Background
3.4 Benchmarking Brazilian Wealth in Context
3.4.1 Distribution of wealth in Brazil
3.5 HNWI Volume and Wealth Trends
4.1 Competitive Landscape
4.1.1 Domestic banks
4.1.2 Foreign private banks
4.1.3 Acquisitions
4.1.4 Wealth managers
4.1.5 Family offices
4.1.6 Financial advisors
4.2 Developments in the Brazilian Private Banking Industry
4.3 Wealth Management and the Private Banking Industry
4.3.1 The Brazilian wealth management industry – clientele model and maturity
4.4 Behavioral Mapping of Wealth Management and Private Banking in Brazil
4.5 Porter’s Five Force Analysis – the Wealth Management Industry
5.1 Additional Components of the Wealth Sector in Brazil
5.1.1 Philanthropy
5.1.2 Demand for intergenerational wealth transfer
5.1.3 Human resource availability for the wealth management industry
5.2 Tax Regulations
5.3 Regulations Related to Immigration, Investment and Employment
5.4 Key Drivers
5.4.1 BRL to US$ exchange rate
5.4.2 Real GDP growth
5.4.3 Per capita GDP
5.4.4 Domestic market capitalization
5.4.5 Commodity index
5.4.6 Foreign direct investment inflows and outflows
5.4.7 Inflation rate
5.4.8 Interest rate
5.4.9 Balance of payments
5.4.10 Government debt
5.4.11 Stock market performance
5.5 Wealth Breakdowns

List of Tables

Table 1: HNWI Wealth Band and Group Definitions
Table 2: Cities in Brazil by Population (Volume), 2013
Table 3: Leading Domestic Banks in Brazil by Local AuM (US$ Million), 2013
Table 4: Leading Foreign Private Banks in Brazil by Local AuM (US$ Million), 2013
Table 5: Leading Wealth Managers in Brazil by AuM (US$ Million), 2013
Table 6: Leading Brazilian Family Offices by Head Office, 2013
Table 7: Brazilian Wealth Management Industry – Recent Deal Activity, 2013
Table 8: Brazilian Income Tax Bands (BRL), 2013–2014
Table 9: BRL per US$ Exchange Rate, 2009–2018
Table 10: Brazilian Real GDP Growth (%), 2009–2018
Table 11: Brazilian GDP per Capita (US$), 2009–2018
Table 12: Brazilian Domestic Market Capitalization (US$ Billion), 2009–2013
Table 13: Brazilian Commodity Indices, 2009–2018
Table 14: Brazilian Foreign Direct Investment (US$ Billion), 2009–2018
Table 15: Brazilian Inflation Rate (%), 2009–2018
Table 16: Brazilian Money Market Rate (%), 2009–2018
Table 17: Brazilian Balance of Payments (US$ Billion), 2009–2013
Table 18: Brazilian Government Debt as a Percentage of GDP, 2009–2018
Table 19: Brazilian Stock Market Performance, 2009–2013
Table 20: Brazilian HNWI Wealth vs GDP Ratio, 2009–2018
Table 21: Brazil – Appendix One
Table 22: Brazil – Appendix Two

List of Figures

Figure 1: HNWI Wealth Band Definitions
Figure 2: Map of Brazil
Figure 3: Brazilian Asset Price Performance (%), 2009–2013
Figure 4: Brazilian HNWI Performance (US$ Billion and HNWI Volume), 2009–2018
Figure 5: Brazilian vs Global HNWIs (%), 2009–2018
Figure 6: Brazilian Wealth Management Industry – Maturity Level of Operators, 2014
Figure 7: The Brazilian Wealth Management Industry – Behavioral Mapping, 2013
Figure 8: The Brazilian Wealth Management Industry – Five Forces Analysis
Figure 9: BRL to US$ Exchange Rate, 2009–2018
Figure 10: Brazilian Real GDP Growth (%), 2009–2018
Figure 11: Brazilian GDP per Capita (US$), 2009–2018
Figure 12: Brazilian Domestic Market Capitalization (US$ Billion), 2009–2013
Figure 13: Brazilian Commodity Indices, 2009–2018
Figure 14: Brazilian Foreign Direct Investment (US$ Billion), 2009–2018
Figure 15: Brazilian Inflation Rate (%), 2009–2018
Figure 16: Brazilian Money Market Rate (%), 2009–2018
Figure 17: Brazilian Balance of Payments (US$ Billion), 2009–2013
Figure 18: Brazilian Government Debt as a Percentage of GDP, 2009–2018
Figure 19: Brazilian Stock Market Performance, 2009–2013
Figure 20: Brazilian HNWI Wealth vs GDP Ratio, 2009–2018
Figure 21: Brazilian HNWIs – Volume by Wealth Band, 2009–2018
Figure 22: Brazilian HNWIs – Wealth by Wealth Band (US$ Billion), 2009–2018
Figure 23: Brazilian HNWIs – Wealth per Capita (US$ Million), 2009–2018

Read the full report:
Challenges and Opportunities for the Wealth Sector in Brazil 2014

For more information:
Sarah Smith
Research Advisor at
Email: [email protected]
Tel: +44 208 816 85 48

SOURCE ReportBuyer


Thursday, August 28th, 2014 EN No Comments

Amana Global, Asset and Capital gear for growth

Written by Editor

Aug. 28, 2014 (LBT) – Amana Global recently unveiled a sleek, new brand identity along with its partner companies, Amana Capital and Amana Asset Management, all under the Amana Holdings Limited umbrella. Having undergone a thorough brand and purpose transformation, the group reinvents itself under the same familiar name with a contemporary new outlook.

“Our interests stemmed from banking and have now grown to serve almost every financial requirement of the market. We were misperceived through time to be catering only to a specific segment of consumers which we have reasonably overcome with due time and are now known to be relevant to all sections of the market. Our new brand identity seeks to portray our growing reputation for professionalism and expertise in the financial solutions and advisory landscape,” said Aashiq Aminuddin, Head of Marketing and Business Development, Amana Global Limited, on the reasons for the change. The companies are involved in investment banking, risk management, wealth and asset management.

The renewed identity reflects the sharp, dynamic and iconic professionalism of its new thinking.  It leads now with a simple yet compelling ‘A.’ as its logo.   The digital presence of the company addresses the more sophisticated needs of modern day clients and an expanding international clientele.  The group is already established in the Maldives and is in the process of setting up operations in Malaysia.

“We are on a constant drive to maximise growth opportunities which recently point beyond the shores of Sri Lanka as well.  By assuming a regional presence we will be better positioned to offer even local clients innovative opportunities.

“Our new objectives called for a refreshing change within ourselves and what we offer our partners.  One of the steps taken in this endeavour was to bring about a change to our Brand Identity making it more relevant and versatile. We consciously associate with the past whilst communicating a renewal of purpose.  Hence, the name was maintained and an iconic “A” was adopted to symbolise our drive for excellence.  It also reflects our simple but fine clarity of purpose, delivering a comprehensive portfolio of financial solutions to end users and industry partners, symbolised by the “full stop,” Aminuddin explained.

The group of companies, Amana Global, Amana Capital and Amana Asset Management, leverages specialist insight and financial acumen to provide a breadth of financial solutions including customised and sustainable financial advisory services for corporate and High-Net-Worth individuals on debt and equity financing, private wealth management, fund management, structuring, financial brokering, corporate finance and real estate management.







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Thursday, August 28th, 2014 EN No Comments

How To Invest Like a Millionaire Without The Millions

It is no secret, the wealthy use their assets to generate more revenue through investments. How they do this, is most likely by hiring a wealth manager from a large firm, bank or trust. Sounds simple enough, but private wealth managers garner high salaries, and to accommodate those salaries, any institution offering these services require some pretty hefty minimums.

Let’s say the wealth manager makes $500,000 a year, which doesn’t include his recruiting bonus, support staff and corporate overhead, the manager needs to work 50, $1 million portfolios at a 1% annual fee for the company to break even. This is why many financial institutions have minimums of several million dollars. BNY Mellon (NYSE: BK) and Northern Trust (NASDAQ: NTRS) offer their services for a $2 million investment minimum while Wells Fargo (NYSE: WFC) asks for $5 million.  Along with the astronomical minimums, fees of 1-2% of your total investment will be charged annually.

A majority of the American population cannot come up with several million dollars to put into a wealth management account, and even if they could, they would probably be deterred by the annual fees.

Fortunately, with the advent of technology, we can now utilize the same services offered by private wealth managers, for a fraction of the price and a significantly lower minimum investment. Companies do this by using software based investment advisors, essentially cutting out the middleman of wealth management.

One of the leaders in this new wave of wealth management is . Unlike traditional wealth managers, they require a minimum investment of $10,000, not $10 million, making their services attainable for most Americans. They also have less overhead costs and can offer a hugely discounted annual rate of 0.5%, less than half of what most private wealth manager’s charge.

FutureAdvisor creates a target portfolio for you, based on your age, risk tolerance and the years you have until retirement.

Future Advisors

They also link to your existing investment accounts and give you a step by step list of how to turn what you have, into what you want.

Future Advisors

They only charge you the 0.5%, if you want them to perform these steps for you and maintain the account. They also offer a premium service, which include all the services that were previously reserved for millionaires. These perks include auto-rebalancing, tax optimization, and tax harvesting.

If you were ever interested in trying wealth management services, but just couldn’t afford them before, is worth looking into. The site itself is quite user friendly, easy to navigate and easy to read. They also give you historical performance, making it easy to compare to your current investment strategies.

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“The views expressed represent the opinion of the author and are not intended to reflect those of FutureAdvisor or serve as a forecast, a guarantee of future results, investment recommendations or an offer to buy or sell securities.”

This post was sponsored by FutureAdvisor


Wednesday, August 27th, 2014 EN No Comments

Stanbic IBTC Asset Floats N1bn Exchange Traded Fund

Stanbic IBTC 

Eromosele Abiodun
Stanbic IBTC Asset Management Limited (SIAML), a wholly owned asset management subsidiary of Stanbic IBTC Holdings Plc, has concluded arrangements to float the Stanbic IBTC ETF 30 (“the Fund”), which opens on Monday, September 15, 2014 and closes on Wednesday, October 15, 2014.

At the signing ceremony held in Lagos yesterday, directors of SIAML and all other professional parties signed the deal to issue 10,000,000 units of the Fund of 100 each at par (the “Offer”). The minimum subscription is 10,000 units and multiples of 5,000 units thereafter.
Approvals for the registration and listing of the units of the fund have been obtained from the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE). Stanbic IBTC Capital Limited is the issuing house to the Offer.

An Exchange Traded Fund (ETF) is an investment vehicle that tracks an index, a basket of assets, or a commodity but trades like regular shares on a stock exchange. The objective of the Fund is to replicate as closely as possible the total return of the NSE 30 Index. The Fund will invest 100 per cent of its assets in the same portfolio of securities that comprise the NSE 30 index in proportion to their weightings in the underlying index.

Speaking at the Signing Ceremony, MD/CEO of SIAML, Mr. Olumide Oyetan said: “The NSE 30 Index comprises of the top 30 companies in terms of market capitalisation. The index serves as the flagship benchmark for the stock market as it represents 92 per cent of The NSE’s market capitalisation”

According to him, “the Fund represents a convenient and efficient way for investors to have access to the top 30 most capitalised and liquid stocks on The NSE, in a cost effective manner. We believe that it will appeal to sophisticated and institutional investors that believe in the growth story of companies listing the NSE and by corollary in the abundant growth opportunities that exist in Nigeria”

The Chief Executive, Stanbic IBTC Capital Limited, Ms Yewande Sadiku commended the board of SIAML for their efforts towards the deepening of the Nigerian capital market via the listing of new and innovative products.

Stanbic IBTC Asset Management Limited is a wholly-owned subsidiary of Stanbic IBTC Holdings Plc, while Stanbic IBTC Holdings Plc is part of the Standard Bank Group, Africa’s largest bank by assets. Standard Bank Group has been in operation for 151 years and has direct, on-the-ground representation in 20 African countries. Stanbic IBTC Holdings Plc provides the full spectrum of financial services with a clear focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking and Wealth Management.


Wednesday, August 27th, 2014 EN No Comments

Alibaba’s new wealth management platform Zhaocai Bao hits market

Chinese E-commerce giant Alibaba has launched a new wealth-management platform, Zhaocai Bao.

Unlike its red-hot predessessor Yu’e Bao, Zhaocai Bao sells fixed-term wealth management products akin to some fixed term deposits offered by banks.

However, investment threshold is 100 yuan at Zhaocai Bao’s platform, while most wealth management products sold at banks and insurance companies start from 50 thousand yuan.

It’s also been announced that China National Investment Guaranty will guarantee the safety of investors’ capital on Zhaocaibao.

Alibaba expects total transaction size on Zhaocai Bao to grow to 1 trillion yuan or over 160 billion US dollars in the next two to three years.

Yu’e Bao currently has an asset size of 574 billion yuan since it was launched in last June.


Wednesday, August 27th, 2014 EN No Comments

Van Lanschot posts solid results in first six months of 2014

  • Strategy is on track; strong foundation for further development and growth
  • Client assets up at € 56.1 billion (year-end 2013: € 53.5 billion)
  • Evi, the online savings and investment proposition, is developing towards € 1 billion
  • Net profit up in first half year at € 49.4 million (H1 2013: € 36.3 million)
  • Further strengthening of solid capital base: Common Equity Tier I ratio[1] up to 13.8%

‘s-Hertogenbosch, the Netherlands, 26 August 2014

Van Lanschot today presents its results for the first six months of this year. Karl Guha, chairman of Van Lanschot: “Over the past six months we have again made important progress in the transformation of Van Lanschot to a specialist wealth management firm. This has enabled us to form a good basis for the further development of our client proposition, as well as for growth in the years ahead. The stability of the results achieved in the three core activities Private Banking, Asset Management and Merchant Banking reflects this.

Partly as a result of the positive stock market climate, our client assets have increased further to € 56.1 billion. A positive development is the inflow of savings and assets under discretionary management. The introduction of our online savings and investment proposition Evi in October 2013 has delivered good results: the funds entrusted are growing towards € 1 billion. Two Dutch pension funds have mandated Asset Management to advise on their international portfolios of unlisted real estate investments. Our securities commission amounted to € 94.9 million. Partly thanks to the introduction of the new fee structure for investment advice, only 16% of this total relates to transactions.

Despite the low interest rate environment, interest income remains at roughly the same level as last year. The increase in income due to improved margins nearly compensated the run-off of the commercial and real estate loan book within Corporate Banking. The run-off of risk-weighted assets amounted to over € 250 million in the first half of 2014, and is on schedule. As part of our regular activities, the sale of the 21% stake held by Van Lanschot Participaties in DORC Holding B.V. resulted in a material gain.

Total costs were reduced by around 9% in 2012 and 2013, and will stabilise this year. We will continue to invest in the further development of our client proposition. Several initiatives are taken and investments are being made, aimed at simplifying our processes, products and organisation, bringing our cost target in 2017 within reach.

The addition to the loan provision of € 35.5 million is 14% lower than in the first half of 2013. The number of debtors for whom new provisions have to be taken is declining.

Our solid capital base and funding mix strengthened further in recent months. The Common Equity Tier I ratio rose to 13.8%. Taking into account the net profit for the current year, this ratio would be 14.2%. The fully loaded Common Equity Tier I ratio stands at 11.6%. The leverage ratio[2] is now 4.9%. To support our balanced funding mix, comprising client savings and deposits and capital market funding, we raised an additional € 200 million in long-term funding in the first three months of this year.

We are continuing to make progress in the transformation of Van Lanschot into a specialist wealth management firm. We will be introducing our new Savings Deposit Account for our Dutch clients this autumn. This will allow clients to manage their savings and deposits to suit their own requirements. We will introduce an innovative wealth management proposition to our private banking clients and we will launch compliant proof investing for Business Professionals Executives. Asset Management is continuing to build on its expertise and will open two new funds for investors: Global Smallcap Fund and Global Real Estate Fund. 

These and other initiatives aim to further develop and innovate the service we provide to our clients and to grow our business. Furthermore, it is our intention to change the governance of the group to reflect the wealth management strategy, that we have presented last year. As a result, we will have a smaller Board of Managing Directors and we expect to appoint an Executive Board, that will manage our core activities. Ieko Sevinga, member of the Board of Managing Directors since 2007, will leave the bank at the end of his term of office in May 2015.”

H1 2014 highlights

  • Net profit € 49.4 million (H1 2013: € 36.3 million); underlying net profit (before deduction of non-recurring charges) € 54.1 million (H1 2013: € 40.3 million).
  • Earnings per share € 1.14 (H1 2013: € 0.77).
  • Income from operating activities € 294.4 million (H1 2013: € 280.9 million).
  • Securities commission stable at € 94.9 million (H1 2013: € 94.9 million); recurring commission[3] accounts for 82% of total securities commission (H1 2013: 75%)
  • Interest income € 106.6 million (H1 2013: € 107.9 million); interest margin 1.21% (H1 2013: 1.23%)
  • Staff costs down to € 104.4 million (H1 2013: € 111.7 million).
  • Improvement of the efficiency ratio to 66.2% (H1 2013: 66.6%).
  • Addition to loan provision down to € 35.5 million (H1 2013: € 41.5 million).

Solid balance sheet ratios at 30 June 2014

  • Strong capital positions: Common Equity Tier I ratio 13.8% as at 30 June 2014 (year-end 2013: 13.1%[4]), fully loaded Common Equity Tier I ratio increased to 11.6% (year-end 2013: 10.5%)
  • Leverage ratio under Basel III rules 4.9% (year-end 2013: 5.1%)
  • Highly diversified funding profile: loan portfolio is mainly funded by savings and deposits (funding ratio[5]: 87.9%)

Van Lanschot share repurchase programme
On 26 August 2014 Van Lanschot will begin repurchasing a maximum of 150,000 of its own shares (depositary receipts for ordinary A shares). The share repurchase programme is being carried out in order to cover the depositary receipts for shares to be awarded to employees within the scope of the existing remuneration policy and share plan.

This repurchase programme will be implemented in accordance with the mandate granted during the General Meeting of Shareholders held on 15 May 2014. The programme will end on 31 December 2014, unless the repurchase of a maximum of 150,000 shares has been achieved before this date. Van Lanschot has instructed Rabobank International to implement the repurchase programme; this will ensure that trading decisions relating to the number of shares and the timing of transactions will take place independently of Van Lanschot.

The progress of the repurchase programme will be published weekly on the Van Lanschot website (

[1] Basel III Common Equity Tier I ratio phase-in

[2] Fully loaded

[3] Recurring commission comprises management, advisory and service fees

[4] Based on Basel II rules

[5] The funding ratio is the extent to which the loan portfolio is funded by customer savings and deposits

Additional information

For additional information, please visit

Financial report/ presentation

For a detailed explanation of the results and balance sheet of Van Lanschot NV, reference is made to the financial report and presentation on the 2014 half-year results at

2014 half-year financial statements F. Van Lanschot Bankiers NV

The 2014 half-year financial statements of F. Van Lanschot Bankiers NV are available on as from Tuesday 26 August 2014.

Key dates 2014

Publication of trading update for Q3 2014                     7 November 2014

Media Relations: +31 20 354 45 85;

Investor Relations: +31 20 354 45 90;


Van Lanschot NV is the holding company of F. van Lanschot Bankiers NV, the oldest independent bank in the Netherlands with a history dating back to 1737. Van Lanschot, a wealth manager operating under the Van Lanschot and Kempen Co brand names, is active in Private Banking, Asset Management and Merchant Banking, with the aim of preserving and creating wealth for its clients. Van Lanschot NV is listed on Euronext Amsterdam.



Disclaimer and cautionary note regarding forward-looking statements
This document contains forward-looking statements concerning future events. Those forward-looking statements are based on the current information and assumptions of Van Lanschot management concerning known and unknown risks, developments and uncertainties. Forward-looking statements do not relate to definite facts and are subject to risks, developments and uncertainties. The actual results may differ considerably as a result of risks, developments and uncertainties relating to Van Lanschot’s expectations regarding, but not limited to, estimates regarding income growth, cost development, the (macro) economic climate, political and market trends, acts of supervisory and regulatory authorities and private entities, and changes in the law and taxation. Van Lanschot cautions that expectations are only valid on the specific dates on which they are expressed, and accepts no responsibility or obligation to revise or update any information following new information or changes in policy, developments, expectations or the like. The financial data included in this document have not been audited. This document does not constitute an offer or solicitation for the sale, purchase or acquisition in any other way or subscription of any financial instrument and is not an opinion or recommendation to perform any act or refrain from performing any act.

Van Lanschot 2014 halfyear results

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Van Lanschot via Globenewswire


Tuesday, August 26th, 2014 EN No Comments

MFPC Launches Journal To Address Financial Planning Issues

KUALA LUMPUR, Aug 26 (Bernama) — The Malaysian Financial Planning Council (MFPC) has launched the Journal of Wealth Management and Financial Planning (JWMFP) as part of its continuous efforts to propagate financial planning knowledge in Malaysia.

In a statement Tuesday, the MFPC said the journal captured the pulse of the emerging and promising financial planning profession, and was particularly committed to addressing financial planning issues and challenges.

“The council also welcomes the submission of original research papers in any areas covered by the aim and scope of the JWMFP.

“Interested contributors may log on to for more info,” MFPC President Md Adnan Md Zain said.

The JWMFP editorial board consists of both foreign and local academicians.



Tuesday, August 26th, 2014 EN No Comments

Driving To Achieve Intellectual Excellence In Financial Planning

Pertubuhan Berita Nasional Malaysia,
Wisma BERNAMA,No 28, Jalan 1/65A,
Off Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia.
Tel : 603-2693 9933 ( General Line )
E-mel :


Tuesday, August 26th, 2014 EN No Comments

Wirehouses Share Q2 Results

UBS advisors in the Americas continue to improve their individual results and surpassed a key wirehouse rival when it comes to average fees and commissions per rep as of Q2’14.

“Wealth Management Americas delivered record revenues on invested assets that exceeded $1 trillion for the first time. Financial advisor productivity also reached an all-time high,” said UBS Group CEO Sergio Ermotti, on a call with shareholders.

However, UBS Wealth Management Americas also saw its client flows reverse course after 15 quarters of positive momentum, an indication of just how competitive the business remains.

In the period ending June 30, UBS Americas said the level of client assets topped $1 trillion for the first time. Net new money, though, turned negative; the unit had outflows of $2.5 billion “mainly due to client withdrawals associated with seasonal income tax payments,” the company said in a report.

“The quarter’s results need to be put in the context of WMA very strong net new money track record, with nearly $60 billion of net inflows over the last 16 quarters,” Ermotti explained on the call.

On average, UBS advisors in the United States and Latin America are producing more than their wirehouse rivals. They had $1.07 million in yearly fees and commissions as of June 30—outpacing advisors at Merrill Lynch (BAC), $1.06 million, and Morgan Stanley, $908,000.

Of course, there’s always room to grow: Merrill Lynch says that its experienced reps produce some $1.34 million in yearly fees and commissions on average.

In terms of average client assets per rep, the Merrill Lynch advisors are slightly ahead at an estimated $144.5 million. But the UBS reps are very close behind at $143 million.

Morgan Stanley’s advisors have about $123 million in average client assets, while those at Wells Fargo are averaging about $92 million.

Net asset flows in Q2 at Morgan Stanley were $12.5 billion vs. $12 billion at Merrill Lynch. Both wirehouses saw a slowdown in wealth-management flows from the prior quarter.

As for the total headcount of branded financial advisors, Morgan Stanley has 16,316; Wells has 15,189 (including some who work in banks); Merrill has about 13,485, while Bank of America-Merrill Lynch has a total of 15,560 reps, when those at U.S. Trust are included.

UBS Americas includes 7,119 FAs. The unit had operating income of $1.9 billion in Q2’14 and a pre-tax profit of $238 million ($246 million after adjustments).

“Consistent with our investor update message, we want to be the firm of choice for high-net-worth and ultra-high-net-worth clients and the financial advisor that serves them. That’s why high-quality advisors will always be central to the success of this business,” Ermotti shared.

“Therefore, our focus on FA retention remains relentless, and FA recruiting will continue to be highly selective,” he said.

Morgan Stanley’s wealth unit had pre-tax income of $767 million on net revenues of $3.7 billion. BofA’s wealth group reported pre-tax income of $1.15 billion on net revenues of $4.56 billion; Merrill’s sales represented $3.80 billion or about 83% of the broader group’s results, which includes the operations of U.S. Trust.

Wells Fargo’s Wealth, Brokerage and Retirement unit reported net income of $544 million and revenue of $3.6 billion; the retail brokerage had client assets of $1.4 trillion, and wealth-management assets were $221 billion.


Monday, August 25th, 2014 EN No Comments

Yellow Brick Road promotes its variable interest rates with ’80s themed quiz show

Yellow Brick Road Wealth Management launched a new campaign over the weekend to promote its variable interest rates.

The campaign, developed by With Collective and produced by Nine Entertainment Co’s in-house production team 9mm, takes the form of an ’80s quiz show which sees the contestants answering true or false questions about home loan rates.

With Collective CEO and co-founder Justin Hind said: “We wanted to break down the barriers that people face when they take the first step in getting or refinancing a home loan.

“Because Yellow Brick Road’s target market is 30-45 year old Australians, we decided to go with a nostalgic 1980’s game show theme that demonstrated the difficulty in choosing a home loan using parody. We wanted the campaign to be bright, colourful and cheeky, but we also wanted it to deliver a clear key message of savings for everyday Australians.”

The ad will be playing across Channel Nine, Go and GEM nationally as well as NBN and select WIN regional markets.

It is complemented with a digital campaign which consists of display advertising through NineMSN and REA, plus Google search and remarketing.

A dedicated website landing page further supports the campaign which features a home loan quiz where consumers can win $10,000.

Have your say


Monday, August 25th, 2014 EN No Comments