UK Wealth Management 2003

Overview
Introduction
UK Wealth Management 2002 examines the UK onshore wealth management market from both a supply and a demand perspective. The 1997-2001 size the affluent market (GBP100k+) by number of individuals, aggregate wealth and source of wealth are provided and the number of ultra high net worths (GBP5m+) are segmented into 9 asset bands for 2001. Market shares for 100+ wealth managers are analyzed in three competitive segments: GBP1m+, GBP200k-1m and GBP50k-200k. 9 competitive profiles are presented.

Reasons to Purchase
Assess your competition using our UK 2001 market share data (for three markets: millionaires, high net worths and mass affluents) Find out how your competition has managed to capture its market share with our company profiles covering nine of the largest UK wealth managers.
Discover how big your target market is with our UK HNW model data (including 7 liquid asset bands from GBP300k + between 1997-2001).
Determine the size the lucrative ultra high net worth market (GBP5m+) for 2001, including source of wealth and age.
Evaluate the year in terms of competition, products and services, distribution and alliances within your market.

Scope
Coverage: UK affluent market (GBP100,000+) and UK ultra high net worth market (GBP5m+) in-depth interviews with senior executives within the largest wealth management competitors in the UK, resulting in profiles for (see below):
Report Highlights
The number of high net worths in the UK fell slightly between 2000 and 2001. The
lower asset bands were hardest hit by this fall, while ultra high net worths
were least affected. In fact, an additional 1,000 people were added to the ranks
of the super-rich in 2001.
Wealth managers held 62% of millionaires’ liquid assets in 2001.The largest
players were Barclays, HSBC Republic and Merrill Lynch Investment Managers. The
implication of this dominance of wealth managers in the GBP1m+ market is that
competitors seeking to acquire new clients will have to take them away from
other wealth managers; there is very little money not already being managed.
Wealth managers held 26% of the high net worth market in 2001. It is likely that
in general a lower proportion of individuals with between GBP200k-1m use wealth
managers to manage their portfolios for two reasons. First, a proportion of
these investors may be completely or partly self-directed. Second, a large
proportion of all retail savings and investments in the UK are held in deposits.
Coutts, Lloyds TSB Private Banking and HSBC Investment Managers in this
category.
Scope
Barclays Private Clients, HSBC, Merrill Lynch Invest. Mgrs, Coutts, Lloyds TSB
Private Bank, SG Hambros, Gerrard, Brewin Dolphin, NatWest Private Bank
CHAPTER 1 EXECUTIVE SUMMARY
CHAPTER 2 INTRODUCTION
What is this report about?
Who is the target reader?
How to use this report

CHAPTER 3 MARKET CONTEXT
The year in review: trends in wealth management 2001-2
Introduction
Competitive environment
Wealth management launches in the UK
Withdrawals and retrenchment
Products and services
Alternative investments
Exchange-traded funds
One step forward … two steps back?
A helping hand: 3rd party funds and alliances
Downsizing: a reversal of fortune in wealth management
The high net worth market by size of assets and number of individuals
The sub-groups
Ultra high net worth customers
Market size
Market growth
Earners versus Inheritors
Source of wealth
Age
Market data

CHAPTER 4 COMPETITIVE DYNAMICS
Competitor market shares
Market share in the total GBP100k market
Competition in the millionaires’ market (GBP1m+)
Competition in the high net worth market (GBP200k-1m)
Competition in the mass affluent market
Company strategies to achieve market share
Competitors in the millionaires’ market
Barclays Private Clients: fluent in finance
Market/segment coverage
Product specialisms
Client management structure
Distribution and alliances
Customer acquisition
HSBC: the World’s Local Bank
Market/segment coverage
Product specialisms
Client management structure
Distribution and alliances
Customer acquisition
Merrill Lynch Investment Managers: the US powerhouse weighs in
Market/segment coverage
Product specialisms
Client management structure
Distribution and alliances
Customer acquisition
Competitors in the high net worth market
Coutts: the forward-looking traditional private bank
Market/segment coverage
Product specialisms
Client management structure
Distribution and alliances
Customer acquisition
Lloyds TSB Private Banking: Create didn’t take
Market/segment coverage
Product specialisms
Client management structure
Distribution and alliances
Customer acquisition
SG Hambros: strong brand, strong backing
Market/segment coverage
Product specialisms
Client management structure
Distribution and alliances
Customer acquisition
Competitors in the mass affluent market
Gerrard Group: evolving from stockbroker to wealth manager
Market/segment coverage
Product specialisms
Client management structure
Distribution and alliances
Customer acquisition
Brewin Dolphin: one to watch
Market/segment coverage
Product specialisms
Client management structure
Distribution and alliances
Customer acquisition
NatWest Private Banking: targeting the mass affluent for RBS
Market/segment coverage
Product specialisms
Client management structure
Distribution and alliances
Customer acquisition
Competitive data

CHAPTER 5 APPENDIX
Companies included in the market share analysis
Companies excluded from the market share analysis
Definitions
Further Reading
Datamonitor Reports
Datamonitor Global Wealth Service Briefs
Datamonitor Global Wealth Service Profiles
Do you need further information?
Datamonitor financial services consulting
SPP writing team

LIST OF TABLES
Table 1: Number of wealthy individuals in the UK segmented by asset band, 000s, 1997-2001
Table 2: Liquid assets of UK high net worth individuals, GBPm, 1997-2001
Table 3: UK High net worths segmented by source of wealth, 1997-2001
Table 4: Number of ultra high net worths segmented by liquid asset band, 2000-2001
Table 5: Source of wealth for UK ultra high net worths segmented by liquid asset band, 2000
Table 6: UK Ultra high net worths by source of wealth, 2000
Table 7: Age of high net worth earners and inheritors, 2000
Table 8: Age profile of UK ultra high net worth individuals against general adult population, 2000
Table 9: Average age of UK ultra high net worths, 2000
Table 10: Competitor profile summary, millionaires’ competitors
Table 11: Competitor profile summary, high net worth competitors
Table 12: Competitor profile summary, mass affluent competitors
Table 13: Market share of the top 10 companies competing in the UK GBP1m+ market, 2001
Table 14: Top 20 companies in the GBP1m+ market, minimum threshold versus average assets under management per client, 2001
Table 15: Market share of the top 10 companies competing in the UK GBP200k-1m market, 2001
Table 16: Top 20 companies in the GBP200k-1m market, minimum threshold versus average assets under management per client, 2001
Table 17: Market share of the top 10 companies competing in the UK GBP50k-200k market, 2001
Table 18: Top 20 companies in the GBP50k-200k market, minimum threshold versus average assets under management per client, 2001
Table 19: Companies included in the millionaires’ market shares
Table 20: Companies included in the high net worths’ market shares
Table 21: Companies included in the mass affluents’ market shares

LIST OF FIGURES
Figure 1: The number of high net worths fell slightly in 2001, 1997- 2001
Figure 2: Competitor market shares in the GBP1m+ market, 2001
Figure 3: The top 10 best-performing hedge funds have significantly outperformed equity indexes, June 30 1999 - June 30 2002
Figure 4: ETFs have performed poorly, August 2001 - August 2002
Figure 5: MLIM’s third party distributors in the UK, June 2002
Figure 6: The number of high net worths fell slightly in 2001, 1997- 2001
Figure 7: The largest share of high net worth wealth is owned by those with between GBP200k and GBP300k of liquid assets, 1997-2001
Figure 8: Inheritors remain the largest of the indentified sub-groups, 1997-2001
Figure 9: The majority of UK ultra high net worths hold between GBP5-20m in onshore liquid assets, 2001
Figure 10: The number of UK UHNW individuals more than doubled 1997-2001
Figure 11: Source of wealth of UK ultra high net worths, 2000
Figure 12: Getting on in life- the majority of the ultra high net worth market is middle-aged, 2000
Figure 13: The average UK UHNW individual is in their 50s, 2000
Figure 14: Age profile, earners versus inheritors, 2000
Figure 15: The top 50 UK wealth managers held less than 35% of the GBP100k market in 2001
Figure 16: Competitor market shares in the GBP1m+ market, 2001
Figure 17: Competitor market shares in the GBP200k-1m market, 2001
Figure 18: Competitor market shares in the GBP50k-200k market, 2001