Euromoney’s Private Banking and Wealth Management Survey 2014: Global players reinforce leadership in wealth management as costs rise

Higher regulatory costs and lower margins have played into the hands of the global private banks that have been able to weather the storm better than their smaller peers.

 
The primacy of global heft and a strong home base

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In Euromoney’s 2014 survey, the big global players have been able to gain client assets in the prime international markets of London, New York, Singapore, Hong Kong, Zurich/Geneva and Dubai at the expense of regional banks.

UBS Wealth Management ranks once more as the best global private bank followed by Swiss rival Credit Suisse. JPMorgan remains third, while Citi moves up to fourth place globally, moving HSBC down a notch.

The top five banks are looking to asset management as the driver for market share. Each now has a chief investment office that is responsible for macro asset allocation decisions for the bank’s clients. It is a move away from the traditional model of private banking.

"The industry is moving to a model of investment management for private wealth and away from just collecting funds," says Jürg Zeltner, chief executive of UBS Wealth Management.

Individual chief investment officers (CIOs) are now crucial to leading wealth managers. JPMorgan seems to be winning the battle of asset management, having moved to a CIO model in the late 1990s. It ranks first in equity and fixed-income portfolio management as well as in the alternative investments of private equity, hedge funds and real estate.

JPMorgan Private Bank’s chief executive Phil di Iorio says banks have often just leveraged investment views from asset management or the investment bank instead of having a dedicated CIO "who analyzes markets with a private client lens".

In Asia, a key region for private banks, the global banks dominate the top 10 overall. UBS, Citi, Credit Suisse, HSBC and JPMorgan take the top five positions in Asia respectively.

China Merchants Bank (CMB) won on its home turf in China. CMB executive vice-president Liu Jianjun tells Euromoney in an interview that China’s banks will need to respond to the growing need of China’s wealthy for cross-border asset allocation and overseas market.


Notes to editors:

2014 marks the 11th year of Euromoney’s Private Banking Survey – the industry’s leading barometer of the world’s best service and product providers to the world’s wealthy. Close to 500 institutions took part in the survey from 93 countries, with around 3,000 responses. Together they represent $14.4 trillion in assets under management.

Euromoney’s Private Banking Survey covers more than 35 different product and client categories on a global and regional basis, and has ranking results in 73 countries. The results are based on a combination of bank-provided data and peer review, and a full methodology is published online.

The trends that are shaping the industry are analyzed in detail in the editorial coverage accompanying the survey results, which will be published in the February issue of Euromoney magazine and available online on February 6 on Euromoney’s new online private banking channel: www.euromoney.com/privatebanking.

Coverage also includes interviews with the heads of private banking at the largest global wealth management institutions, heads of private banking in Asia and Latin America, and interviews with the top five CIOs at the private banks.

Contact details:

To access the results and coverage of Euromoney’s Private Banking Survey, visit www.euromoney.com/privatebanking  

To subscribe to Euromoney magazine and Euromoney.com, and for full access to the Euromoney 2014 Private Banking Survey results, contact:

Patrick McCulloch, patrick.mcculloch@euromoneyplc.com Tel: +44 2890 290402

For editorial questions, contact:

Helen Avery, private banking editor, havery@euromoneyny.com  

Any other queries about the results should be directed to:

Tim Moxon, head of research, tmoxon@euromoney.com  

Kalin Trifonov, private banking research, ktrifonov@euromoney.com