The fallout from the financial crisis means that investors are taking a greater interest in portfolio construction and engaging with their wealth managers more than ever, writes Elisa Trovato, and it is those products that prioritise liquidity and transparency that are proving the most attractive

With private clients in both traditional and emerging markets looking for investment opportunities, asset and wealth managers are once again scouting for new markets in which to distribute their products, writes Yuri Bender

Private banks are re-evaluating their entire due dilligence and fund selection processes, writes Elisa Trovato, leading to a rise in the use of Ucits III vehicles and managed accounts

With private banks and wealth managers facing huge challenges in the current financial climate, the inaugural Global Private Banking Awards reflect those institutions that are successfully addressing their clients’ needs, writes Yuri Bender

The role of asset allocation is crucial to the performance of a client’s portfolio, but some private clients are making important decisions without even realising it, writes Yuri Bender

Private wealth managers have huge experience in asset allocation, which they can share with institutions such as pension funds, but the institutions, most of whom are running benchmarked briefs, are far too arrogant to learn lessons from private banks.

The strong conviction at Lyxor Asset Management in Paris is that beta always triumphs over alpha. “Getting the asset allocation correct is more important than fund selection,” says Lyxor’s senior strategist Florence Barjou.

The era of banking secrecy is over, meaning that the world has changed for Swiss banks. But how they position themselves in the new financial landscape has huge implications for the whole wealth management industry, writes Yuri Bender

Yuri Bender take a look at some of those financial centres who will be hoping to benefit from the end of banking secrecy

Gibraltar was one of a number of jurisdictions to be placed on the OECD ‘grey’ list following G20, a move that did not surprise Chief Minister Peter Caruana, writes Elliot Smither

Wealth managers across Europe are looking to implement new business models with an onshore focus, either by recruiting new teams of managers or by acquiring entire businesses, writes Yuri Bender

It is clear that private banks and asset managers must act now to respond to the challenges thrown up by the financial crisis, but, as Yuri Bender reports, opinion differs on how best to react

With many of the big wealth management businesses linked to underperforming investment banks, smaller firms are becoming increasingly attractive to private bankers, writes Elisa Trovato

Picking up good stocks at low valuations and recruiting quality personnel currently out of work are just two ways that asset managers can benefit from the current market uncertainty. Elizabeth Cripps looks at where the big wins are likely to come from

When it comes to choosing the right products and managers, it is often hard not to look at past performance. But performance isn’t everything, and it is just as important to understand how the fund is managed, writes Elisa Trovato

With investors reacting to uncertain market conditions by moving out of mutual funds and into deposits, distributors are responding by seeking out traditional, high value products and newer opportunities in sectors and emerging markets, writes Elisa Trovato

In an increasingly competetive market the correct communication strategy is vital. Promoting brand awareness is a good start, but on the wealth management side, providing the right information to the right people is key. Elisa Trovato reports

Absolute return strategies – originally borne out of the need to preserve investors’ capital during the equities downturn – are now popular core offerings for many managers. Elisa Trovato reports

At this time of the year, every portfolio could do with a bit of tightening up. Elisa Trovato scans the European markets for some of the best investment tips for 2008

Convincing a client adviser in the private banking world to experiment in new product areas can be a difficult undertaking. Elisa Trovato examines why steering the sometimes sceptical distributor is certainly worth the effort

Fund managers implementing the latest version of the European investment guidelines are finding their options opening up, writes Elisa Trovato

Mergers and acquisitions are becoming a growing trend in the European financial services market, and now could be the right time to go for one of these options as investment firms are enjoying high profitability, writes Elisa Trovato

The nimbleness and talent within boutique structures encourage enhanced performance, and the personal touch offered inspires loyalty in their clients. However, the instability of such a small organisation could prove a stumbling block, especially as the big players are getting in on the act, writes Yuri Bender

Financial institutions have always understood the importance of having the right staff – provided they don’t leave for a competitor. Elisa Trovato finds out how some are tapping unusual resources to keep the pool of talent at its best

Asset managers are under pressure to keep distribution channels informed of the latest investment products – but it’s no longer enough to give the same information to everyone. Elisa Trovato looks at how to make sure clients get the data they need

Organic growth or acquisitions? Being an early bird or offering strong products? A developing market or an environment open to new solutions? What makes a successful transition into a new market continues to be a bone of contention. Elisa Trovato weighs up the options

Product manufacturers are no longer content to offer specialist niche products to their clients, who demand multiple strategies. The key word now is ‘diversification’ – to offer combinations or change investment policy to suit large distributors. Yuri Bender reports

The differing interests of industry players with regard to the automation and standardisation of fund transactions has seen a general lack of activity. However, with increased volumes it now seems that the time for action is near, writes Elisa Trovato

The fund industry is growing fast. During the period from January 2005 to September 2006, international fund centres like Luxembourg and Dublin have shown a percentage increase of total net assets of 57 and 58 per cent respectively, compared to 27 per cent for Europe. Statistics show that the majority of this growth comes from net inflows. In Luxembourg, for example, 65 per cent of assets have come from cash inflow, as opposed to market appreciation. But with the consolidation at distributor level, and the growing number of funds of funds and multi-managers, assets are rising faster than accounts. As a consequence, the average transaction size is increasing and so is the risk of processing large transactions manually, observes Paul O’Neil, head of European shareholder services at State Street.

Making sure you have a comprehensive range of financial products is now about more than just plugging gaps by adding another product – it is about creating business solutions for to meet clients’ specific needs. Elisa Trovato reports

Diversification is the key word in the asset allocation world. However, the demands from private investors for greater returns means banks are taking increased risks to bring in expected performance of assets. Elisa Trovato reports

Grabbing market share is not just about established, European markets: it is also about making the most of the new ones. And the big names in private banking are all looking to Eastern Europe.

Private banks and wealth managers seeking to increase in size are combining acquisition with organic growth. However, while mergers may be all about setting your sights on the right target, asset gathering is a complex fusion of sophisticated products, staff retention and a new ‘holistic’ approach that is currently so fashionable. Elizabeth Cripps reports

Such is the appetite for alternative and innovative products, that manufacturers and distributors are experiencing a pull for their wares from investors. However, traditional alternatives are not the only target, as demand for specialist structured products and equity funds enter the mix. Yuri Bender reports

In the brave new open architecture world, bankers must be able to provide good advice on long-term investment trends and not engage in the big push. Indeed, they should only spend a small proportion of their time giving guidance on simple products backed by technology. Yuri Bender reports

Emerging market local currency debt offers investors access to local markets, but with several crucial differences to hard currency debt – local currency debt is less volatile and can provide investors with the upside from real currency appreciation, write Rob Drijkoningen, Martijn Oosterwoud, Bart van der Made

Product reviews do not necessarily mean closing down obsolete ranges. In fact, current trends are seeing many more new products being launched than shelved. Elisa Trovato examines the latest schools of thought among forward-thinking product manufacturers

As a private bank, retail bank or wealth manager, you have trained, coached and perfected your client advisers, who have built up strong relationships with their clients. What’s left to worry about? In short, the risk of losing not only those advisers, but the clients with them.

The client-facing investment advisers are often the staff who can make or break a deal, so it is essential to equip them with the tools to sell a product. Investment knowledge is easily taught, but can they really be trained in ‘soft’, or people skills? Elizabeth Cripps reports

As competition heats up in the private banking arena, new kids on the block are finding it difficult to lure high-net-worth clients away from the big brands. Christine Senior looks at ways of attracting new customers, including diversification, niche offerings and a good old-fashioned service

With banks coming under pressure to offer more choice to clients, many are questioning the rationale of having both manufacturing and distribution networks. However, if in-house performance is good and greater resources are available, perhaps it pays to keep it close to home. Yuri Bender reports

It’s all very well having an innovative product, but the next challenge is persuading often sceptical client advisers that your strategy is relevant to them. Yuri Bender looks at the varying approaches taken to sway them across to your way of thinking

Crédit Agricole Asset Management, the ?400bn French fund house, predicts a huge renewed appetite for equities as an asset class during 2006. “But investors will be making a careful, conscious decision,” believes Christine Lacoste, the French group’s head of marketing

Pioneer Investments completed the restructuring of its Luxembourg cross-border product range in 2005 in anticipation of two expected trends for the coming year: firstly the rationalisation of distributors’ own product ranges, and secondly the accelerating interest in

There are currently three ways of satisfying demand for absolute return products, expected to increase in 2006, says Simon Wilson, head of marketing at Old Mutual Asset Managers, a specialist boutique backed by FTSE 100 company Old Mutual plc. These solutions are structured products, hedge funds and multi-assets funds.

Distributors and investment product manufacturers both agree that the BRIC markets will prove to be major building blocks in 2006, while absolute return strategies are still a hotly debated topic. Yuri Bender reports on the trends touted for this year; Elisa Trovato profiles the providers

With open architecture releasing a plethora of choice for the average investor, it is perhaps more

prudent for banks to guide consumers towards the correct asset allocation and product structure, rather than obsessively choosing individual funds. Elizabeth Cripps looks at the options

For many individuals with assets to invest, their existing savings bank will be the first port of call. In this way, banks often have an opportunity to offer fund selection and asset allocation as part of a wider range of banking services.

Private clients are realising that the absolute return strategies employed in the wake of market crashes are

inadequate for the long-term and so are looking towards a realistic benchmark augmented by asset allocation strategies employing a suitable amount of risk, writes Yuri Bender

Simone Cimino, chairman of Natexis Cape, the Milan-based private equity investment affiliate of French institution Natexis Banques Populaires, is seeing an increased appetite from wealthy investors for private equity stakes.

At last, distributors are beginning to realise that they do not have the in-house expertise to make the most of the range of products they are expected to deal with and are looking towards outsourcing non-core investments. However, one potential pitfall is ensuring you pick the right manager for the job, writes Elizabeth Cripps

It would be easy to assume that the delegation of specialist asset management to specialist houses creates a three-link chain: provider-distributor-client.

As the world’s wealthy investors become more and more demanding, banks need to re-invent their client service models through the smart use of latest technology in relationship management advice and investment modelling. But support systems for reporting, accounting and portfolio administration must also be integrated, writes Roxane McMeeken

Thomas Wolfsenberger, CEO of Swissrisk forecasts the future of private banking technology: “In five years time, front office solutions will start to be proactive and quite a few obstacles will have been overcome. Data availability will improve and multi channel services will experience a major break through. Not only will private banks start to rely upon online services in order to cope with the ever-increasing needs of private banking clients, but they will be viewed as a high quality supplement to physical interaction with clients. Collaboration via the internet will increase.

Investment funds’ total expense ratios (TERs) have so far been opaque – which has suited the giants as their TERs are the biggest. But, with the European Union’s ruling that investors should be told exactly how much they are paying for funds, this looks set to change. Roxanne McMeeken reports

Manufacturers, distributors, managers – how are their relationships changing with one another, and who will gain the ultimate prize of interacting directly with the final client? With these issues set to be thrashed out at Fund Forum 2005, Roxane McMeeken examines the likelihood of mergers and more outsourcing.

Structured products are gaining in popularity because they soften the pain when entering lucrative yet volatile markets, and provide a steady stream of income for both fund managers and investment banks. Roxane McMeeken examines the various stages to developing a bespoke offering

Interview with Tom Slocock, head of sales at Credit Suisse UK

Woeful inflows into European money market funds in 2004 obscure the fact that interest in guaranteed and cross-border funds grew appreciably. Paula Garrido explains why the pace of growth can be considered less important than the evolutionary development of the European fund management industry as a whole

Single registration could save time and money for fund managers wanting to distribute funds across borders. In the same way, achieving common European standards in fund processing will bring further efficiency to the industry.

With investor confusion over industry initiatives such as depolarisation and open architecture growing, banks must make greater efforts to respond to the needs of clients – while at the same time investors must get used to the idea that quality advice comes with a price tag. Paula Garrido explains

So far we have discussed how OA is forcing distributors to listen to what their clients want when offering third-party products through their internal networks. The question is now to find out what manufacturers need to do in order to get their products across in the most effective way. For some, going directly to distributors or using distribution platforms is proving to be the best way of doing business. This is not the approach followed by the Ixis Asset Management group.

With profitability in mind, just how ‘open’ should distributors be when offering third-party products? Paula Garrido reports on the various views expressed at PWM’s second Open Architecture Forum

For Credit Suisse Private Bank, represented by Zurich-based third-party product chief Burkhard Varnholt, open architecture distribution is one of the tools which should be born in mind when translating market views into third-party product creation.

While some distributors are still considering whether to embrace OA, for others this has proved to be the only route ahead to remain competitive in an environment where investors are becoming more and more demanding.

If implemented properly, OA can bring benefits to the organisations involved and best value for customer, but according to Marc Hannan, at Barclays Global Investors, there are some risks that need to be considered.

As always happens when it comes to sales in a competitive environment, there is a danger that the end customers might buy the wrong product or one that does not fulfil their needs.

Open architecture is viewed as a way to increase competitiveness, retain clients and attract new accounts. However, anything less than a genuine choice of products, and any indicator of it being solely for the benefit of the banks themselves, will result in a customer exodus. Paula Garrido reports

Investment banks and fund managers are locked in a battle for the favour of distributors of financial products to high-net worth individuals. Paula Garrido pits the banks’ structured products against the managers’ longer termist pooled fund products

Technology is a top concern for Europe’s private banks, and, as Paula Garrido explains, the software developers are working hard to come up with solutions for each situation so that the wealth managers can concentrate on their clients and let the back office take care of itself

In addition to fund selection in the front office, performance monitoring, risk control and relationship management, technology is playing a crucial role in the consolidation and settlement of all investment transactions. The wealth management sector has long been focusing on the need for further automation of these back-office tasks.

Investment fund distribution technologies are not working as

efficiently as planned – partly because distributors need to be more involved with setting up these systems in the first place. Paula Garrido and Yuri Bender report on the latest transfer agency developments

Bigger funds used to charge less for management, but latest research shows some of Europe’s largest, best-selling funds levy the highest total expense ratios. Paula Garrido investigates

Are hedge funds just a portfolio sweetener or an asset class to be toasted for many years to come? Elizabeth Cripps investigates the asset allocation trends of the top six private banks handling the wealth of Europe’s high net worth individuals

Service is gaining the edge over performance in terms of what private clients want, writes Yuri Bender, and wealth managers are eager to take whatever steps are necessary to achieve the perfect combination.

Whether it’s chopping and changing, remoulding or building something new from scratch, designers of products for the wealth management industry have their work cut out for them. Paula Garrido and Yuri Bender report.