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Innovations in the wealth management marketing mix

Datamonitor
June 25, 2003
53 Pages - SKU: DFMN905417

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Innovations in the wealth management marketing mix

Introduction
This brief scopes the European and Global marketplace for competitive examples and strategies within the marketing mix. It assesses the level of innovation involved in the strategies, the trends behind them and the applicability of all innovations to particular markets/ competitor types.

Scope
* Detailed information and opinion on innovations across the wealth management marketing mix including products, pricing, promotion and distribution.

* Covers both innovations from wealth managers and of interest to wealth managers

* Research included a range of interviews with leading executives including product managers, company strategists and marketing executives.

* Secondary information was gathered using industry journals, news bulletins, company websites and other Global Wealth Service products

Report Highlights
Wealth managers have been particularly innovative in terms of the development of structured and alternative products. In response to an increasing demand for lower risk products with high returns, private banks have found unusual ways to achieve this including investments in gold, property prices and through inventive guaranteed products.

Pressure from disgruntled investors has caused a trend towards performance related fees on both the fund and portfolio management sides, even as far as no performance, no fee.

Whereas advertising used to concentrate on superior investment performance and phenomenal yields, it now focuses on getting the best value from your investment and reassurance of its security. This has been accompanied by newcomers shaking up the market with the introduction of radically different and aggressive advertising campaigns.

Reasons to Purchase
* This brief evaluates a wide range of marketing/product innovations allowing wealth managers to both cherrypick ideas.

* It helps wealth managers to prioritise the strategies that offer good returns on investment.

* It helps wealth managers to identify new niches from which revenue growth is possible.

INTRODUCTION
Research methodology

PRODUCT AND SERVICE INNOVATIONS
Alternative and Structured products
Gold-linked products
Barclays bonds with gold
Guaranteed Products
Rothschild offers a short-term capital guaranteed deposit
Property-linked products
The property market warrants a good product
Actively managed structured products
Newton becomes active in structured products
Expatriate products
RBSI account brings many advantages
Landowner products
Coutts makes land liquid
Philanthropy and ethical investing
Philanthropy
Merrill Lynch connects with the community
Brewin Dolphin is developing charitable partnerships
Ethical investing
Credit Suisse offers sustainable investment Internet platform
Exchange traded funds
iFunds activates portfolio management service

PRICING INNOVATIONS
Performance related fees
Combination fees
Bridgewater clubs management together with performance
Pure performance fees
Bedlam goes for no performance, no fee approach
Wrap/separately managed products
The UK market needs to be wrapped up
Active advisory fees
BNP Paribas prices for advice in targeting some of its more self directed clients

PROMOTIONAL INNOVATIONS
Advertising
ISIS takes investors back to reality
Bedlam says it like it is
The name game
Creative names inject life
Client-specific promotion
Rathbones hosts industry seminars
Links with luxury brands
SG Hambros exploits co-branding opportunities
Television
Credit Suisse Private Bank: coming to a TV near you

DISTRIBUTION INNOVATIONS
Joint ventures
Gerrard seeks sanctuary
Investment reporting
Citigroup offers consolidated reporting
Online distribution
Credit Suisse makes the most of remote banking

CONCLUSION

APPENDIX
Further reading
Datamonitor Reports
Datamonitor Global Wealth Service: Strategic Briefs
Datamonitor Global Wealth Service: Competitor Tracking
Do you need further information?
Datamonitor financial services consulting
SPP writing team

List of Tables
Table 1: Example of Asset Reserve payouts
Table 2: Example of Bedlam charges, Sept 1999 - Sept 2002

List of Figures
Figure 1: London Gold Fixing, Jan 2001 - April 2003
Figure 2: Interest calculation for DepositPlus Issue 2
Figure 3: Potential gross return through the Positive Index Option
Figure 4: Potential gross return through the Negative Index Option
Figure 5: Using certificates to gain long exposure to the UK average house price
Figure 6: Using put warrants on the Greater London average house price to hedge the risk of a fall in property prices
Figure 7: ISIS launch campaign 2002
Figure 8: ISIS launch campaign 2002
Figure 9: Bedlam goes for the throat
Figure 10: Bedlam’s advertising hits home
Figure 11: The Dolphin Deposit goes up and down like a dolphin diving
Figure 12: Credit Suisse’ TV advertising focuses on four brand values
Figure 13: Credit Suisse Private Banking Website

Innovations in the wealth management marketing mix

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