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The twin benefits of charitable giving—supporting a cause and minimizing taxes—have long held great appeal for the moneyed crowd.
More and more wealthy clients are abandoning their newly completed estate plans, alleging that the final result does not suit their needs.
New research from The Wharton Global Family Alliance shows wealthy families look to single family offices for conflict-free advice on investments and charity.
When notorious hotelier and reputed Queen of Mean, Leona Helmsley, passed away last August and the details of her will became public, it created a media feeding frenzy—her dog was named the beneficiary of a $12 million trust fund. Less than a month later, the similar (but much larger) trust established by Oprah Winfrey to ensure the future well-being of her pets made the headlines. In an age where the extravagances of the glitterati seem almost commonplace—space flights, anyone?—the actions of these two wealthy and powerful women still had the ability to astound. Why?
Over the past 12 years, the number of affluent investors negotiating the fee they pay for investment management services has more than tripled—a fact that may prompt more individuals to review and perhaps reduce their own fees, putting further downward pressure on an industry that has enjoyed attractive margins during a period of long-term growth. This trend could have a significant impact on the profitability of asset managers, an outcome that may reverberate through the financial services world in unexpected ways if not prepared for or managed.
Our research has clearly demonstrated that wealthy individuals turn to the professionals with whom they have established relationships, such as accountants or small business bankers, for referrals to other professionals that provide other products and services they need, such as financial advisors or insurance agents. In a study with 164 individuals with more than $20 million in net worth, 54% turned to a financial professional and 16% turned to a non-financial intermediary to find their current advisor. Perhaps most important, these types of referrals almost always are followed, which means another professional can be the key to a growing and profitable advisory business.
We designed our survey with 269 established private banks, brokerages and multifamily offices to help us understand the state of the private wealth business, and in the process had an opportunity to probe more deeply on a variety of relevant issues. Our first article based on the research (see Private Wealth, June/July 2007, “A View From The Top”) discussed how these firms define their ideal client, the methods they rely on to find qualified prospects, and the formal business development programs they use to target specific types of affluent clients. The second article (see Private Wealth, August/September 2007, “Blurring The Lines”) examined the newer additions to the overall product and service platforms at these organizations, with an emphasis on alternative investments and non-investment services such as tax administration, luxury acquisitions and family and personal security.
In the inaugural issue of Private Wealth, we discussed some of the proprietary research we conducted with the senior management of 97 private banks, 78 brokerage firms and 94 multifamily offices. We looked at their “ideal clients,” their new business development efforts and their perception of the competitive environment. We now turn our attention to their use of alternative investments for their wealthy clients and the provision of noninvestment management services.
The high-net-worth occupy a desirable standing in today’s society and, as a result, are lionized for their accomplishments and their assets and scrutinized for their idiosyncrasies and behavior. Without question, the pursuit of wealth is one of mankind’s great obsessions. Achieving millionaire status is commonly cited as the “American Dream,” and now it is a dream that is attainable for more people than ever before.
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More and more wealthy clients are abandoning their newly completed estate plans, alleging that the final result does not suit their needs.
New research from The Wharton Global Family Alliance shows wealthy families look to single family offices for conflict-free advice on investments and charity.
When notorious hotelier and reputed Queen of Mean, Leona Helmsley, passed away last August and the details of her will became public, it created a media feeding frenzy—her dog was named the beneficiary of a $12 million trust fund. Less than a month later, the similar (but much larger) trust established by Oprah Winfrey to ensure the future well-being of her pets made the headlines. In an age where the extravagances of the glitterati seem almost commonplace—space flights, anyone?—the actions of these two wealthy and powerful women still had the ability to astound. Why?
Over the past 12 years, the number of affluent investors negotiating the fee they pay for investment management services has more than tripled—a fact that may prompt more individuals to review and perhaps reduce their own fees, putting further downward pressure on an industry that has enjoyed attractive margins during a period of long-term growth. This trend could have a significant impact on the profitability of asset managers, an outcome that may reverberate through the financial services world in unexpected ways if not prepared for or managed.
Our research has clearly demonstrated that wealthy individuals turn to the professionals with whom they have established relationships, such as accountants or small business bankers, for referrals to other professionals that provide other products and services they need, such as financial advisors or insurance agents. In a study with 164 individuals with more than $20 million in net worth, 54% turned to a financial professional and 16% turned to a non-financial intermediary to find their current advisor. Perhaps most important, these types of referrals almost always are followed, which means another professional can be the key to a growing and profitable advisory business.
We designed our survey with 269 established private banks, brokerages and multifamily offices to help us understand the state of the private wealth business, and in the process had an opportunity to probe more deeply on a variety of relevant issues. Our first article based on the research (see Private Wealth, June/July 2007, “A View From The Top”) discussed how these firms define their ideal client, the methods they rely on to find qualified prospects, and the formal business development programs they use to target specific types of affluent clients. The second article (see Private Wealth, August/September 2007, “Blurring The Lines”) examined the newer additions to the overall product and service platforms at these organizations, with an emphasis on alternative investments and non-investment services such as tax administration, luxury acquisitions and family and personal security.
In the inaugural issue of Private Wealth, we discussed some of the proprietary research we conducted with the senior management of 97 private banks, 78 brokerage firms and 94 multifamily offices. We looked at their “ideal clients,” their new business development efforts and their perception of the competitive environment. We now turn our attention to their use of alternative investments for their wealthy clients and the provision of noninvestment management services.
The high-net-worth occupy a desirable standing in today’s society and, as a result, are lionized for their accomplishments and their assets and scrutinized for their idiosyncrasies and behavior. Without question, the pursuit of wealth is one of mankind’s great obsessions. Achieving millionaire status is commonly cited as the “American Dream,” and now it is a dream that is attainable for more people than ever before.
This is the first article in a four-part series based on a proprietary study conducted by Prince&Associates Inc. With the objective of bringing the readers of Private Wealth cutting-edge, empirically based perspectives on the high-net-worth universe and their advisors, we surveyed 269 senior executives—97 private bankers running organizations with a minimum of $1 billion in assets under management, 78 managing directors at brokerage firms with a similar minimum in their businesses and 94 executive directors of multifamily offices with a minimum of $750 million in assets under management.
|
More and more wealthy clients are abandoning their newly completed estate plans, alleging that the final result does not suit their needs.
New research from The Wharton Global Family Alliance shows wealthy families look to single family offices for conflict-free advice on investments and charity.
When notorious hotelier and reputed Queen of Mean, Leona Helmsley, passed away last August and the details of her will became public, it created a media feeding frenzy—her dog was named the beneficiary of a $12 million trust fund. Less than a month later, the similar (but much larger) trust established by Oprah Winfrey to ensure the future well-being of her pets made the headlines. In an age where the extravagances of the glitterati seem almost commonplace—space flights, anyone?—the actions of these two wealthy and powerful women still had the ability to astound. Why?
Over the past 12 years, the number of affluent investors negotiating the fee they pay for investment management services has more than tripled—a fact that may prompt more individuals to review and perhaps reduce their own fees, putting further downward pressure on an industry that has enjoyed attractive margins during a period of long-term growth. This trend could have a significant impact on the profitability of asset managers, an outcome that may reverberate through the financial services world in unexpected ways if not prepared for or managed.
Our research has clearly demonstrated that wealthy individuals turn to the professionals with whom they have established relationships, such as accountants or small business bankers, for referrals to other professionals that provide other products and services they need, such as financial advisors or insurance agents. In a study with 164 individuals with more than $20 million in net worth, 54% turned to a financial professional and 16% turned to a non-financial intermediary to find their current advisor. Perhaps most important, these types of referrals almost always are followed, which means another professional can be the key to a growing and profitable advisory business.
We designed our survey with 269 established private banks, brokerages and multifamily offices to help us understand the state of the private wealth business, and in the process had an opportunity to probe more deeply on a variety of relevant issues. Our first article based on the research (see Private Wealth, June/July 2007, “A View From The Top”) discussed how these firms define their ideal client, the methods they rely on to find qualified prospects, and the formal business development programs they use to target specific types of affluent clients. The second article (see Private Wealth, August/September 2007, “Blurring The Lines”) examined the newer additions to the overall product and service platforms at these organizations, with an emphasis on alternative investments and non-investment services such as tax administration, luxury acquisitions and family and personal security.
In the inaugural issue of Private Wealth, we discussed some of the proprietary research we conducted with the senior management of 97 private banks, 78 brokerage firms and 94 multifamily offices. We looked at their “ideal clients,” their new business development efforts and their perception of the competitive environment. We now turn our attention to their use of alternative investments for their wealthy clients and the provision of noninvestment management services.
The high-net-worth occupy a desirable standing in today’s society and, as a result, are lionized for their accomplishments and their assets and scrutinized for their idiosyncrasies and behavior. Without question, the pursuit of wealth is one of mankind’s great obsessions. Achieving millionaire status is commonly cited as the “American Dream,” and now it is a dream that is attainable for more people than ever before.
This is the first article in a four-part series based on a proprietary study conducted by Prince&Associates Inc. With the objective of bringing the readers of Private Wealth cutting-edge, empirically based perspectives on the high-net-worth universe and their advisors, we surveyed 269 senior executives—97 private bankers running organizations with a minimum of $1 billion in assets under management, 78 managing directors at brokerage firms with a similar minimum in their businesses and 94 executive directors of multifamily offices with a minimum of $750 million in assets under management.
|
The twin benefits of charitable giving—supporting a cause and minimizing taxes—have long held great appeal for the moneyed crowd.
More and more wealthy clients are abandoning their newly completed estate plans, alleging that the final result does not suit their needs.
New research from The Wharton Global Family Alliance shows wealthy families look to single family offices for conflict-free advice on investments and charity.
When notorious hotelier and reputed Queen of Mean, Leona Helmsley, passed away last August and the details of her will became public, it created a media feeding frenzy—her dog was named the beneficiary of a $12 million trust fund. Less than a month later, the similar (but much larger) trust established by Oprah Winfrey to ensure the future well-being of her pets made the headlines. In an age where the extravagances of the glitterati seem almost commonplace—space flights, anyone?—the actions of these two wealthy and powerful women still had the ability to astound. Why?
Over the past 12 years, the number of affluent investors negotiating the fee they pay for investment management services has more than tripled—a fact that may prompt more individuals to review and perhaps reduce their own fees, putting further downward pressure on an industry that has enjoyed attractive margins during a period of long-term growth. This trend could have a significant impact on the profitability of asset managers, an outcome that may reverberate through the financial services world in unexpected ways if not prepared for or managed.
Our research has clearly demonstrated that wealthy individuals turn to the professionals with whom they have established relationships, such as accountants or small business bankers, for referrals to other professionals that provide other products and services they need, such as financial advisors or insurance agents. In a study with 164 individuals with more than $20 million in net worth, 54% turned to a financial professional and 16% turned to a non-financial intermediary to find their current advisor. Perhaps most important, these types of referrals almost always are followed, which means another professional can be the key to a growing and profitable advisory business.
We designed our survey with 269 established private banks, brokerages and multifamily offices to help us understand the state of the private wealth business, and in the process had an opportunity to probe more deeply on a variety of relevant issues. Our first article based on the research (see Private Wealth, June/July 2007, “A View From The Top”) discussed how these firms define their ideal client, the methods they rely on to find qualified prospects, and the formal business development programs they use to target specific types of affluent clients. The second article (see Private Wealth, August/September 2007, “Blurring The Lines”) examined the newer additions to the overall product and service platforms at these organizations, with an emphasis on alternative investments and non-investment services such as tax administration, luxury acquisitions and family and personal security.
In the inaugural issue of Private Wealth, we discussed some of the proprietary research we conducted with the senior management of 97 private banks, 78 brokerage firms and 94 multifamily offices. We looked at their “ideal clients,” their new business development efforts and their perception of the competitive environment. We now turn our attention to their use of alternative investments for their wealthy clients and the provision of noninvestment management services.
The high-net-worth occupy a desirable standing in today’s society and, as a result, are lionized for their accomplishments and their assets and scrutinized for their idiosyncrasies and behavior. Without question, the pursuit of wealth is one of mankind’s great obsessions. Achieving millionaire status is commonly cited as the “American Dream,” and now it is a dream that is attainable for more people than ever before.
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