$10 TRILLION AVAILABLE FOR WEALTH MANAGERS....BAC LARGEST IN THE WORLD
For Wealth Managers, $10 Trillion Up For Grabs July 9, 2010, 5:54 am
The global private banking sector has the potential to nearly double its size thanks to about $10 trillion of untapped wealth that is still up for grabs, Reuters reported, citing the Scorpio Partnership’s annual benchmark.
But the industry, still led by Bank of America, followed by Switzerland’s UBS and Morgan Stanley, needs to work harder to woo new clients, as lower returns and inefficiencies are keeping potential rich customers away, the survey of about 230 wealth managers showed.
Private banks managed about $16.5 trillion at the end of 2009, up from $14.5 trillion at the end of 2008, mainly due to improved market performance. The sector currently manages only 42 percent of the about $40 trillion of investible assets belonging to those with at least $1 million to spare, known as high-net worth individuals.
“Based on our global research with thousands of clients and advisors, the realistic amount of bankable assets likely to be available to the industry is around two-thirds of the total,” said Catherine Tillotson, a managing partner at specialist consultant Scorpio Partnership. “This implies there is approximately $10 trillion of high net worth assets that could be advised by banks.”