Tough Times
From a steady, low-risk growth industry to a hazardous spot in a heartbeat: The global wealth management industry has been subject to a rapidly changing environment in recent months.
The financial markets have been weak and vacillating between fears of deflation and inflation. The clients' asset base thus eroded and „old fashioned“ investments like cash or gold started to look good – investments that yield poor margins to the banks. As a consequence, the operating income pool is shrinking. The collapse of Lehman Brothers led the clients to diversify assets between different banks and generally prefer banks with simple business models over large banks. State guarantees for client deposits and state aid to banks shifted the competition landscape. Counterparty risks turned into a big problem for banks and their clients alike, structured products lost their shine. The Madoff affair killed off the clients' former love affair with hedge funds. Trust has become a big issue.
And as if this was not enough, non-state-guaranteed entities have trouble refinancing themselves in the bond markets, the private wealth management business is looked upon as a welcome source of capital by many new competitors in the financial industry. Regulation is tightening while the governments of the large industrial countries are on a hunt for tax revenues, primarily targeting rich citizens and offshore destinations for asset management, which creates new insecurities for the wealth management business all over.
Take the opportunity to hear international leaders' voices on these topics, to discuss them formally and informally with experts and industry exponents. Find the right conclusions for your own business.
We look forward to seeing you at the summit
Claudia Gabriel
Editor-in-Chief, Schweizer Bank
Olivier Toublan
Editor-in-Chief, Private Banking
Dr. iur Urs Ph. Roth,