Shifts in the UK Wealth Management Landscape

Published by: Datamonitor

Published: Sep. 22, 2009

Table of Contents

Overview

Catalyst

Summary

Methodology

Executive Summary

Large players have lost ground to their smaller competitors, and there is plenty for them to be worried about going forward

In the wake of the crisis, HNWs are wanting more banker contact and less mistakes

Larger wealth managers need to address the overloading of relationship managers, while smaller wealth managers need to exploit the window of opportunity

Table of Contents

Table of figures

Table of tables

COMPETITIVE CHANGES IN THE UK WEALTH MANAGEMENT MARKET

The largest players in the UK wealth management market have been severely tested and the rankings are changing

The total assets under management by the top 25 providers fell in

For many wealth managers, the changes in AUM and total clients in 2008 went in opposite directions

The total number of staff has swollen and contracted in line with the movements of AUM

The larger players have lost ground to their smaller competitors, and there is plenty for them to be worried about going forward

Large wealth managers were soundly beaten in 2008 by the medium and small-sized players

Fundamental weaknesses around perceived financial stability, brand and personal relationships are contributing to the larger wealth managers' problems

The larger wealth managers appear to be overloading their relationship managers with clients

The relative overloading of relationship managers within larger wealth manager is not likely to ease in the near future

CUSTOMER CHANGES IN THE UK WEALTH MANAGEMENT MARKET

In the wake of the crisis, HNWs are wanting more banker contact and less mistakes

There is a large group of HNWs wanting to profit from recovery

Not making errors is seen as being key in retaining HNW clients

Increased face-to-face contact is the key to increasing share of wallet

STRATEGIC RECOMMENDATIONS FOR UK WEALTH MANAGERS

Larger wealth managers need to address the overloading of relationship managers and work on quality, while smaller wealth managers need to exploit this window of opportunity

Key action one: avoid cutting support staff-do not underestimate their importance

Key action two: Recruit good relationship managers and get client loading ratios to an acceptable level

Key action three: Assess damage to brands, images and reputations and seek to rectify problems

APPENDIX

Methodology

Private Asset Managers (PAM)

Wealth Management Market Leaders Survey

Bibliography

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: AUM within UK wealth managers in 2007 and

Table 2: Changes in AUM and total clients in

Table 3: Changes in total staff and relationship manager compared with AUM growth

Table 4: Changes in 2008 AUM, client base and discretionary/advisory split

Table 5: What will determine HNWs' choice of wealth management service over the next two years?

Table 6: Relationship managers within large providers do appear to be stretched compared with those in smaller providers

Table 7: In 2008, small and medium-sized players were strong recruiters

Table 8: What are HNWs demanding today?

Table 9: What is the best way to retain clients today?

Table 10: What is the most effective means of increasing share of wallet today?

Table 11: Large wealth managers would have to vastly increase the number of relationship managers to reach the client loading factors of the smaller players

Table 12: Large wealth managers would have to vastly increase their numbers of relationship managers to reach the loading factors of the smaller players

List of Figures

Figure 1: UK HNWs are most influenced by personal relationships in their choice of wealth manager

Figure 2: UK HNWs are looking to ways to profit in the current environment

Figure 3: The best way for wealth managers in the UK to retain HNW investors is not to make errors

Figure 4: The best way for wealth managers in the UK to increase share of wallet is by increasing face-to-face contact

Figure 5: The relative client loading of the different sized players in the UK market and its impact on quality of service

Figure 6: Large wealth managers contact clients on the telephone less frequently than smaller players

Figure 7: The larger the wealth manager, the less frequently their relationship managers meet up with HNW clients

Abstract

• Analyzes the data contained in Private Asset Managers 2009
• Draws on the results of Datamonitor's Wealth Management Market Leaders Survey

• Understand the changing competitive landscape in the UK, and the reasons underlying this
• Gain insight into the shifting attitudes of HNWs and what this means for wealth managers
• Learn what wealth managers need to do in the short, medium and long term to keep and capture clients

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