EDHEC-Risk European Private Wealth Management Survey

This survey has been completed as part of the second year of the "Private Asset/Liability Management" research chair, a chair endowed by Ortec Finance.

Author(s) :

Noel Amenc

Professor of finance, director of development at EDHEC Business School and head of EDHEC-Risk Institute.

Sergio Focardi

Professor of finance at EDHEC Business School.

Felix Goltz

Head of applied research at EDHEC-Risk Institute.

David Schroder

Lecturer in finance at Birkbeck College, University of London.

Lin Tang

Research analyst at EDHEC-Risk Institute.

Presentation :

This survey taken by EDHEC-Risk Institute draws on responses from 159 private wealth managers (PWMs), whose clients include the mass affluent (financial assets of less than $1 million) as well as so-called ultrahigh-net-worth individuals, or UHNWIs (those with financial assets of more than $30 million). The survey targeted PWMs in Europe; those based in Switzerland account for nearly half of all respondents, reflecting the prominence of private wealth management in the country. The 159 respondents are mainly senior investment professionals working in private banks, asset management firms, and family offices; more than half represent organisations managing more than €1 billion of clients' money. The key findings of the survey can be summarised along three lines. First, private wealth managers see the relationships they forge with their clients as the principle source of the value they add. But they fail to exploit this close relationship to customise the services they offer their clients: when portfolios are designed for clients, market factors are taken into account more frequently than are the individual characteristics of the clients. Private wealth managers also fail, on the whole, to provide state-of-the art means of horizon-dependent asset allocation. In fact, when human capital, the time and state dependency of investment opportunities, and other causes of horizon effects are not recognised, one can conclude that horizon-based allocations are approximate rather than optimal. Finally, PWMs see the great potential of taking into account client-specific spending objectives, but only a small minority actually attempts to realise this potential.
Pdf
EDHEC-Risk European Private Wealth Management Survey...
(3.97 MB)
Type : Publication EDHEC
Date : le 14/12/2010
Extra information : For more information, please contact Joanne Finlay, EDHEC Research and Development Department [ joanne.finlay@edhec.edu ] The contents of this paper do not necessarily reflect the opinions of EDHEC Business School.
Research Cluster : Finance

See Also

FT 2016 European Business School Rankings: EDHEC joins the European Top 15
- 05-12-2016
EDHEC Business School joins the exclusive group of the Financial Times’ Top 15 European...
- 09-11-2016
EDHEC Business School introduces new certificates into its Financial Economics programmes, to help its students further differentiate themselves on the placement fronts. These non-degree...
EDHEC MBA moved up 10 positions to reach the Top25 in The Economist WhichMBA Ranking 2016
- 13-10-2016
EDHEC Business School is pleased to announce that the Economist has ranked EDHEC Global...
- 29-09-2016
There are four key findings: • A high global rate of satisfaction (86%) towards Smart Beta among ETF users Investors consider smart beta indices as tools for improving their investment...