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The Wealth Management Industry Is In Pain As Investors Look Elsewhere
According to a new report by Cap Gemini and Merrill Lynch, at the core of this development is a loss of faith amongst the world’s mega rich which has prompted one fourth of those who have financial assets of over one million US dollars to pull funds from their manager or in some cases sack them entirely. Needless to say this is having an effect on the wealth management industry – prompting a wave of departmental augmentations and some redundancies amongst previously high paid advisors. These effects are even being felt on Jersey where at least two large wealth management teams have experienced a reduction in the number of those employed in private banking jobs in Jersey in 2010. To assemble the study they collected a pool of 1, 350 financial advisers and over 60 senior wealth management directors and canvassed them for their views. More than 90 percent of those surveyed reported they had lost wealthy clients during the last two years – since the end of 2008. The survey, which also polled the views of about 250 Ultra High net Worth and HNWi´s globally, also found that three quarters of advisors no longer had any faith in the financial. Financial scandals, which obviously include Bernard Madoff's massive Ponzi scheme, have spurred the rich to rethink their investment strategies. It was wealthy British investors in who were among your worst affected in the past 24 months. The number of those with financial assets of above $1 million slumped by 26 %, or 131, 000, from a peak of 362, 000 in 2009. Chip Tucker, UK director for Merrill Lynch Wealth Management, explained: "We're not alone, but last season was clearly a pretty tough year for the wealthy in Britain." Mr Tucker went on to explain how the rich in the UK were particularly badly hit as the majority had a cultural tendency to commit heavily in equities and real estate property, both of which had suffered dramatic crumbles in value this past year. The report detailed how the world's über-rich are actually selling off the private jets and shying off from buying luxury goods for instance luxury yachts. On the other hand, they have already been ploughing their reserve capital into jewellery, gold and art work. It is in 2011 that we shall see the full extent of this trend and the true nature of its effects in the wealth management industry and jobs in banking. Article Directory: http://www.articledashboard.com Christopher James Rigby is a founder of the FOR group. He invites you to discover banking jobs in Jersey at: Jersey Wealth Management Jobs. When you apply for a job in Jersey here - your application will be picked up by recruiters who will help you through the hiring process for jobs in Jersey. (c) Copyright – Chris Rigby. All Rights Reserved Worldwide. |
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